For businesses owned by a partnership, each partner is responsible for reporting their individual share of income, losses, deductions or credits that the business reports on Form 1065. Form 1065 is accompanied by a Schedule K-1 Form, outlining each partner’s portion of that responsibility. The partners are then required to include information from Form K-1 on their personal 1040 form.
S corporations file their taxes using Form 1120-S. The Schedule K-1 for Form 1120-S operates almost the same as with partnerships. The main difference is that instead of the partners receiving them, the shareholders do.