Filing taxes for a business can be confusing, especially given that the process varies based on the type of business you own
- Compile all of your business records. Every record that details the revenues, expenses, and overall financial situation of your business needs to be organized in one place for easy access.
- Determine which form is right for your business. It’s important that you file the proper tax form for your type of small business. If you operate under a sole proprietorship, you have the option of simply reporting using a Schedule C and attaching it to the rest of your own individual tax return. Even if your business is an LLC, you’ll still fill out a Schedule C form if you’re the only owner. Small businesses that act as corporations will fill out either a Form 1120 or Form 1120S, depending on their nature. LLCs that have more than one member involved most often file a Form 1065. Take some time to define the exact nature of your small business so that you can easily identify the correct form.
- Complete your selected form. Here comes the fun part. It’s time to actually fill out your tax form, and the difficulty involved will vary depending on which kind of form you’re using. Tax professional are a experienced resource that can help you wrap up the process efficiently.
Written by
Rain Carlson
I help business owners get peace of mind through best accounting systems implementation, strategic planning and tax services, empowering clients to focus on the growth and development of their business and make well-informed decisions.