TAX FILING

TAX FILING

Sole Proprietorships are generally required to file a Schedule C or a Schedule C-EZ with Form 1040 and pay quarterly estimated taxes. Estimated tax is the method that all businesses use to pay Social Security and Medicare Taxes along with Income Tax.

Sole Proprietorship or LLCs with one member
Filing Deadline: April 15, 2019 (the same as your personal taxes)

If it is an unincorporated company by oneself or a Limited Liability Company with one member, we have to file as a Sole Proprietor. Report business earnings and expenses through an extra form Schedule C attached to personal taxes, no need to file a separate return.

Schedule C is two pages, and the IRS has fairly detailed line-by line instructions to help get it right. Subtract total expenses from earnings to get net profit or loss and include this number in personal tax return.

If total income is below $66,000 you can use the IRS Free File software to file your taxes. If your income is higher than $66,000, you can still take advantage of the IRS free fillable forms.

If its analog and filing a hard copy of tax return with the IRS, find the address for your state here. Make sure it is postmarked on or before the deadline.

Partnerships or LLCs with multiple members
Filing Deadline: March 15, 2019

Partnerships can take different forms, but for tax purposes, they all file small business taxes in the same way. Same goes for Limited Liability Companies with multiple members that elect to file taxes as a partnership. Small businesses falling in this category, have to file Form 1065, and then each individual member will get a Schedule K-1 showing share of the profit/loss for the year. This is reported on each partner is personal tax return and there is no need to file separate return. The IRS has instructions to help with Form 1065, but this form is complex and usually requires the help of tax professional.

C Corporations, S Corporations or LLCs that elect to be Corporations
Filing Deadline: April 15, 2019 (the same as your personal taxes)

If a small business is set up as a C Corporation, or treat a LLC as one, then we need to prepare a separate tax return with Form 1120, in addition to personal taxes.
Form 1120 is similar to the Schedule C form, but it is more complex, requires more detail and is separate and distinct from personal tax return. The IRS has instructions for Form 1120, and it is great to have a scan to understand the nuts and bolts, but most small business owners elect to hire a professional to complete these forms.

S Corporations
Filing Deadline: March 15, 2019

If business is a C Corp or LLC that has elected S Corp status, we need to file a separate corporate tax return, but will use From 1120S. S Corp shareholders will need to report their share of profit or loss with a Schedule K-1 on their personal taxes, but the corporation still needs to file its own tax return. The IRS has instructions for Form 1120S to help out, but again, most small business owners elect to use a professional.

Any small business that pays contractors
Filing Deadline: Sent to recipients by January 31, 2019

If small business has paid $600 or more to a contractor or professional (i.e. someone who worked for or provided with a service but is an employee), we will need to file Form 1099 as part of taxes. These forms need to be ordered from the IRS, so we need to ensure that we request them well in advance of the January 31 deadline.

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