Both the State of South Carolina C Corporation Income Tax Return (Form SC1120) and S Corporation Income Tax Return (Form SC1120S) require Schedule D to be completed. This schedule includes important information about the corporation:
- The state and date of incorporation, along with the date it commenced business in South Carolina.
- The location of its registered office in South Carolina as well as the name of the registered agent.
- Its principal address in South Carolina as well as the nature of its business.
- The name and address location of the books
- The amount of stated capital on the balance sheet (this amount is used to calculate the annual license fee).
- The number of shares of stock that are (a) authorized and (b) issued and outstanding.
If any of the above is missing, you will not be able to e-file the return until it has been included.
Authorized and Issued Shares of Stock
While most of the information on Schedule D can be pulled from the federal return, the information regarding the authorized and issued shares of stock cannot be, so you will need to enter that information by hand.
- Authorized Shares - The maximum number of shares of stock the company can issue. This number is specified in the company's articles of incorporation.
- Issued and Outstanding Shares - The number of authorized shares that have been issued plus restricted shares (reserved for employee compensation and incentive) plus float (shares available to trade).
Caveats:
- The quantity of authorized shares and issued and outstanding shares will always be greater than zero. (The return will reject for a quantity of 0.)
- The issued and outstanding shares can never be greater than the authorized shares.
Information about the corporation's authorized shares of stock is spelled out in its articles of incorporation. The corporate officer(s) should be able to provide the information about the shares of stock that have been issued. You will need to include in Schedule D information about each class and series of stock.
To enter information regarding the authorized and issued shares of a corporation's stock in Form SC1120 or SC1120S in TaxSlayer Pro, from the SC1120 or SC1120S menu select:
- Additional Forms and Schedules
- Schedule D - Annual Report
- Other Schedule D Information
- Shares of Stock
In this menu you will provide a minimum of two entries:
- One entry for the authorized shares, and
- One entry for the issued and outstanding shares.
Select New. You'll be asked Are these Authorized Shares?
- Answer Yes if you're entering information about the authorized shares.
- Answer No if you're entering information about the issued and outstanding shares.
Enter complete information about each category of stock. The return won't be e-fileable unless complete information is entered.
Additional entries of either category will be needed if a company has more than one class of stock or more than one series of stock.
Additional Information: