| Income Tax Division |
Businesses:
Entity Filing Requirements |
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| This information is intended to provide a brief summary of filing requirements and does not cover all possible circumstances.
If you have any questions or need additional information, you may contact the Tax Division at (937) 296-2502 weekdays from 8:00 a.m. to 5:00 p.m.
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| Corporations |
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C Corporations are required to file as entities on the net profits earned that are derived from sales made, work done, services performed or rendered and business or other activities conducted in Kettering, whether or not such corporation has a place of business in Kettering. |
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S Corporations are required to file in the same manner as C Corporations and report any income or loss. If the S Corporation has net income, the corporation must pay the tax due rather than the individual shareholders. The individual shareholders of an S Corporation do not include any gain or loss on their individual returns. |
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Any portion of a C or S Corporation’s net operating loss sustained in any tax year commencing after December 31, 2000, may be carried forward for a period not to exceed three (3) taxable years immediately following the year in which the loss was incurred. |
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| Partnerships |
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A partnership is required to file as an entity. If the partnership has net income, the partnership must pay the tax due. |
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Partners are required to include all partnership income and losses on their individual returns. If income, a credit may be claimed for tax paid by the partnership. |
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For loss carryforward purposes, a partnership loss does not remain at the partnership level. All losses flow down to the partners; therefore, non-resident partners need to file a Kettering return in order to use any loss carryforward. |
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Please note that there is one exception to the partnership filing requirements. A partnership may, with approval by the Tax Manager, elect to apply loss carryforwards at the partnership level if all partners agree not to include the income or loss at the individual level. This change has been made for the convenience of partnerships whose partners have no reason to file a Kettering return other than to claim a refund of their share of Kettering tax credit(s). Partnerships with partners who are Kettering residents may also request to use this method if all partners agree to exclude the income or loss at the individual level. The resident partner must still include the K-1 with his individual Kettering Income Tax Return and note that the income or loss has been taken at the partnership level. In either situation, all Schedule(s) K-1 must be included with the partnership return. |
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| LLC(s) |
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A limited liability company is required to file consistent with its federal filing. For example, if the LLC is recognized as a partnership at the federal level, it should file as a partnership at the local level. |
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| Miscellaneous Entities |
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Any undertaking, not specifically defined above, conducting activities or producing income, including but not limited to, rental of real estate and personal property, and a business conducted by a trust or guardianship of an estate that produces a net profit shall be subject to city income tax and is required to file a return as an entity. |
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