Business Tax Returns Preparation

 

Business tax requirements are complicated.
The tax forms you have to file, and the filing
deadlines depend on your business structure.

 

Sole Proprietor
If you decided to keep it simple and structure your business as a sole proprietorship, you’re in luck. The paperwork and tax filing requirements are far easier as a sole proprietor than for any other type of business.
As a sole proprietor, you are the business. You can report all of your business income and expenses on a Schedule C, which you file with your personal income tax return (Form 1040). The business itself is not taxed separately.

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Partnership
If your business is structured as a partnership, you will use Form 1065 to file your return. A partnership, unlike a corporation, does not pay tax. Instead, it passes net income, income tax credits, and other tax items through to each of the partners – those people who have a beneficial interest in the business.
Each partner receives a Schedule K-1 that reports their share of items to report on their tax return.
When you receive a Schedule K-1 from your partnership return, you report partnership tax items on Schedule E, Part II, of your Form 1040 individual tax return.

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C-corporation
If you’ve incorporated as a C corporation, you will file Form 1120 for your business return. It is very detailed and you must provide balance sheet information for the beginning and end of the tax period(Schedule L) as well as Reconciliation of Income/Loss (Schedule M-1), etc.
Form 1120 is not filed as part of your personal income tax return. The corporation reports any dividends or other tax information that applies to you on the applicable Form 1099.
Corporations must pay tax on their earnings, if applicable. Their shareholders also pay tax on dividends and other returns.
This is called double taxation, because the same income is taxed twice.

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S-corporation
S corporations are structured like C-corporations but have a limited number of shareholders. S-corporation uses Form 1120-S to report its income and expenses. However, just like partnerships, S-corporations don’t pay taxes by themselves.
The shareholders report their share in the company’s net income on their personal tax returns and pay taxes, using their individual income tax rates. This enables the S-corporation to avoid double taxation on its income.

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Nonprofit organization
Nonprofit organizations, such as ministries, charities, and many educational organizations, file Form 990 to report information including income, expenses, and balance sheet information.
If you run a nonprofit organization, you must also provide information about the officers of the organization and your sources of funding.

 

Business tax returns preparation requires high level of professionalism and experience.

Hire a team of experienced tax professionals to prepare your business tax return.

 

All our tax professionals are both credentialed and experienced.

We are Enrolled Agents – the highest credential the IRS awards.

We are here to navigate you through all the challenges of the tax world!