Form 1120-X vs. Form 1120 Schedule G 2017-2024

Hey there, YouTube! So, for this video, I wanted to cover the IRS Schedule G that goes along with Form 1120. The Form 1120 is filed for C corporations in the U.S., and Schedule G is required to disclose certain types of shareholders that own a substantial amount of stock in the company. Okay, so we've got the form in front of us here, Schedule G example, but I've also got a slide here with some background information and then the example. We'll then flip back to Schedule G. Starting at the top here, Schedule G has to be included if the corporation is answering yes to that one question. Well, it's two questions actually in Schedule K, which asks if any entity or person owns directly 20% or more, or directly or indirectly 50% or more of the total voting power of all classes of the corporation stock. Just to be very clear here, this is only used to disclose shareholders that have voting stock. That's important because corporations will issue different types of classes of stock, some voting and some non-voting. Some classes may have more votes per share than others. For example, Class A may have one vote per share, while Class B may have 10 votes per share. So, it's crucial to focus only on the voting shares in the company. If we look at our example here, we have Fake Consulting Business Inc., a Delaware corporation, taxed as a C corp for tax purposes. This entity has not made an S corp election, so it remains a C corporation for federal tax purposes. It has the following ownership structure: Class A common stock, which are the voting shares by default, with 35% held by XYZ Business, 40% by John, 15% by ABC Company Inc., and...