There are a few different ways that you likely have your small business structured. Some will have a sole proprietorship, others will have a C- corporation or an S-corporation. This matters because depending on your business structure, filing taxes is going to look a little different. It’s important to understand what you need to have gathered and organized to make filing taxes easier. Propel Your Accounting is here to talk about what documents and forms you need to successfully file taxes for your business.
Importance of Bookkeeping
It is vital that your business records are gathered and organized. You need to have a record of all sales that took place in the last year as well as any expenditures that were part of the year as well. It is much easier to do if you are keeping organized records throughout all the year. It is impossible to calculate your income and your deductions without the records to back them up. Make sure you’re keeping a record of receipts, mileage, transactions and more to accurately calculate your income as well as deductions.
Figuring Out the Right Tax Form to Use
The next thing that you are going to need to do is figure out what form you should be using to file your taxes. This is going to be different depending on how your business is structured. If you’re running your business as a sole proprietorship, you are going to simply use Schedule C which is attached to your personal income tax return. However, if you are structured as a corporation, you will need to file your taxes separately from your personal income tax return and use different forms. For C-corporations, you will be using a Form 1120 and for S-corporations, you will use Form 1120S. If you have a multi-member LLC, you will fill out Form 1065 for your taxes.
You Need to Be Aware of Deadlines
Something that you need to be aware of and thinking about are the deadlines for your taxes as a small business. If you are a sole proprietorship, you will simply use Schedule C and attach it to your personal income tax return which is due on April 15th each year. For an S-corp, you are going to be required to fill out the appropriate forms and have them in by March 15th. For those filing as a C-corp, you will be required to file by April 15th. However, this cannot be sent in with your personal income tax return and need to be filed separately.
Bookkeeping, Accounting, Business Consulting & HR / Admin Services in the United States of America
If you are having a difficult time keeping your records organized and filing your taxes as a business, you can turn to Propel Your Accounting to help you keep it all straight. We will take all the work out of your bookkeeping needs so that you can focus on other areas of your business. Call us today!
