One of the most challenging parts of owning your own business is navigating the tax filing process. It can seem complicated and difficult when you’re trying to find your footing. There are a couple of different ways that you can do it depending on how your business is structured. There will be different forms that are required that will depend on which type of business you are. However, there are some steps that are going to be necessary regardless of the form that you use to calculate your taxable income. Mark Dicus & Company is here to talk about what you need to do to prepare your taxes as a small business owner.
Collect & Organize Tax Records
Bookkeeping is a big part of owning a successful business. You need to have organized records to make your tax filing a simpler process. There are computer programs and spreadsheets that can help make it easier to keep track of all the transactions that you have completed throughout the year. You need the information for every sale and expenditure that occurred during the year to effectively complete the forms for your taxes. You will also need documentation for all deductions that you have throughout the year as well. This includes receipts, mileage, and other records for deductions.
Find the Right Tax Form
You need to determine the right tax form to file your taxes as well. Like mentioned above, this is going to depend on the way that your business is structured. There are many small businesses that operate on a sole proprietorship. This is going to require a Schedule C that is attached to their own personal taxes. If you have a business that are structures like a corporation, you will have to file taxes on a separate corporate tax return. This is done using Form 1120 for C-corporations or Form 1120S for S-corporations. Knowing the right forms are an important part of filing your taxes.
Pay Attention to the Tax Deadlines
There are going o be different filing deadlines for different types of businesses. If you are filing using Schedule C, you aren’t going to have to make any changes to the deadlines in which you have always filed your taxes. However, when you are filing as a C-corporation or an S-corporation, you will need to take note of different dates. For C-corps, you need to file by the 15th of April. For an S-corp, you will have to file by the 15th of March. You aren’t allowed to send these forms with your personal income tax return like you can when filing using Schedule C.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you have questions about how to file taxes as a small business, you can turn to Mark Dicus & Company for help. We will take care of preparing your taxes as well as handle all of your bookkeeping needs. Call us today!