First-Year S-Corp Owner Checklist
A practical, plain-English checklist for new solo S-corp owners. Use it to organize the moving pieces in year one — pay planning, deadlines, records, and reserves.
1. Set up the basics
- Confirm S-corp election is valid and acknowledged.
- Open a dedicated business bank account.
- Pick payroll and accounting tools.
- Decide who handles tax filings (you, a CPA, or both).
2. Plan owner pay early
Don't wait until December. Sketch a salary range using the reasonable salary calculator and a first-pass plan in the salary calculator.
3. Run consistent payroll
- Set a recurring payroll schedule from the start.
- Make sure W-2 setup is in place for the owner.
- Track 2% shareholder health insurance handling if applicable.
4. Build a reserve habit
Open a separate tax reserve account and move money in regularly. Use the quarterly tax planner to size set-asides.
5. Put deadlines on a calendar
Add S-corp filing dates, quarterly estimates, and payroll filings to a single calendar. See the deadlines calendar.
6. Keep clean records
- Reconcile bank accounts monthly.
- Keep receipts and supporting documents organized.
- Track basis-related items so Form 7203 isn't a scramble.
7. Review quarterly
- Compare actual profit vs. plan.
- Check salary and distribution pace.
- Adjust reserves before the next estimated payment.
Common first-year mistakes
- Skipping payroll for months and trying to fix it in December.
- Treating distributions as the only form of pay.
- Mixing personal and business cash.
- Ignoring quarterly estimates entirely.
Start your first-year plan in minutes
Use the calculator to draft a salary, distribution, and reserve plan you can revisit each quarter.
Open the calculatorFor planning and education only. This page is not tax, legal, payroll, or financial advice. Consult a licensed professional for your specific situation.
Do I need a CPA in year one?
When should I start payroll?