Minnesota S Corporation M8 Filing Requirements

Filing Requirements

Corporations doing business in Minnesota that have elected to be taxed as S corporations under section 1362 of the Internal Revenue Code (IRC) must file Form M8.

Who Must File

Any corporation with a valid federal election under IRC section 1362 is considered an S corporation for Minnesota purposes.

The entire share of an entity’s income is taxed to the shareholder, whether or not it is actually distributed. Each shareholder must include their share of income on their tax return. However, the S corporation taxes and minimum fee are paid by the entity.

M4, Minnesota Corporation Franchise Tax, instead of Form M8.

Minimum Fee

An S corporation is subject to a minimum fee if the sum of its Minnesota source property, payroll and sales or receipts is at least $500,000. However, the S corporation is exempt from the minimum fee if the S corporation is a qualified business participating in a Job Opportunity Building Zone (JOBZ) in Minnesota and all of its property and payroll are within the zone.

The minimum fee is computed on M8A, which is on page 2 of Form M8.

File Electronically

Options are available to electronically prepare and file your S corporation tax return. Electronic filing is a secure, fast and easy way to file. For more information, go to the Minnesota Department of Revenue website at www.revenue.state.mn.us.

This post is an excerpt from the Minnesota Department of Revenue’s publication, 2011 S Corporation Form M8 Instructions.

This is also part of a series of posts on S corporation M8 instructions.