![]() Step 3: File by the deadlineĭifferent tax forms have different tax filing deadlines. Using tax preparation software or outsourcing your tax filings to a CPA or Enrolled Agent will make the process as painless as possible. If you have any expenses that don't fall into the categories provided, there's also a section to list those expenses separately. ![]() It also has boxes to enter common business income and expense categories, such as advertising, insurance, legal and professional fees, office expenses, rent, repairs, supplies, taxes, utilities, and wages. Each form has a section for providing basic information about your business, including your business name, address, tax identification number, principal business activity, and accounting method. Whichever form you use to file your business taxes, the process is similar. files Form 1120, U.S Corporation Income Tax Return. C corporations are the only entities that pay federal income taxes directly rather than via the owner or shareholder's personal tax return. Similar to partnerships and multiple-member LLCs, S corp shareholders receive a Schedule K-1, Shareholder's Share of Income, Deductions, Credits, etc., which they use to complete and pay taxes on business profits on their personal tax return. S corporations file federal income taxes using Form 1120S, U.S. LLCs can also elect to be taxed like S corporations or C corporations. LLCs with more than one member, also known as multiple-member LLCs, file the same form as partnerships: Form 1065. Income and expenses from the business go on Schedule C of the owner's personal tax return. The IRS treats LLCs with only one member, also known as single-member LLCs, like sole proprietorships. LLCs file business taxes in several ways. Instead, each partner receives a Schedule K-1, Partner's Share of Income, Deductions, Credits, etc., reporting their share of the partnership's profit or loss, which they use to complete their personal tax return. Return of Partnership Income but don't pay taxes directly to the IRS. Partnerships file a tax return using Form 1065, U.S. Instead, business income and deductions go on Schedule C, Profit or Loss from Business, which gets filed along with the business owner's personal tax return. ![]() Sole proprietors don't file separate tax returns for the business. ![]() The tax forms you use to report business income depend on how your business is structured. Otherwise, you may need to gather copies of your business bank account and credit card statements, invoices, receipts, payroll records, mileage logs, asset purchase details, and other records documenting your business income and deductions. If you use one of these apps, gathering your tax records may be as simple as printing a Profit & Loss Statement. There are several options out there, including QuickBooks, FreshBooks, and Wave. The best way to track your company's income and expenses is to use small business accounting software. There are various ways to file business taxes, depending on whether the business is structured as a pass-through business or incorporated.Įach business structure has its own tax forms and filing deadlines, but you don't have to become a tax law expert to file business taxes.Ĭalculating your small business tax liability starts with your business revenues and expenses. Around 400,000 small businesses start up each year, and along with selling their product or service, new business owners face new tax filing requirements.
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