Small Business Guide: How to File Business Taxes
Taxes are politicized and protested, but they're a fact of life.
Whatever your opinions on where the money goes, and how much you're responsible for, taxes aren't going away any time soon.
If you own a business or work for yourself, figuring out what you need to pay and how to do it can be challenging. Keep reading for a quick look at how to file business taxes.
Leave nothing out. It's important to get all of your records in front of you, both income and expenses. Plus, anything else that might be relevant to your taxes based on the type of business you operate.
If you keep track of everything in a spreadsheet or software program, great. It'll be much easier to get a clear picture of your financial situation if you already have everything organized. Plus, it's much easier to share your information with a tax professional or export to a tax filing program.
Understanding Forms and What You're Responsible For
Once you've got your information together, it's time to figure out what forms you'll need to fill out.
While you'll always need to report your income to the IRS, the forms you use will depend largely on the type of business you run and how you operate.
If you're a sole proprietor or are the only owner of an LLC, you may only need to complete a Schedule C. Larger businesses may require a Form 1120 along with others. Be sure to do your research and figure out exactly what you need to complete to stay within the law and avoid penalties or other issues.
Filling out the Forms
Once you've narrowed down the forms you'll need to fill out, it's time to get started.
If you want to do things the old-fashioned way, The IRS has all of the various income tax forms on their website along with instructions. Taxes can still be completed entirely on paper.
To be safe, talk to an income tax professional or at least use a trusted software program to help you choose the right forms and complete them correctly.
Don't Forget about Deadlines to File Business Taxes
Getting all of your tax documents done and filed on time is one of most important parts of filing small business taxes. Paying late can really set your business back with fees and penalties.
For those filing a simple Schedule C, the typical deadline of April 15th still applies. But, for larger businesses, other deadlines may apply instead. It's also important to be paying quarterly estimated taxes if applicable.
Completing Your Taxes
Keeping up with taxes doesn't have to be difficult. With proper planning and a little preparation, you can avoid costly penalties and the headache of trying to throw everything together at the last minute.
Don't wait to file business taxes, start preparing today.
If you're worried that you're missing something and think you could use a little help preparing for and filing your taxes, get in touch with us for a free consultation.