Income Tax Filing For Small Businesses

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Income Tax Filing For Small Businesses
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• How you prepare and file your taxes, depends
  entirely on what type of small business you have
  whether you run it as the sole proprietor or use
  a legal entity like an LLC or corporation.
  Depending which applies to you, there will be a
  tax form to report the income from your business
  and its expenses. While the forms are different,
  the way in which you calculate your taxable
  income, is much the same.
• What you should do first
• Gather up all your business records - those that
  report the earnings of your business and all your
  business expenses - and have them to hand. If you
  use

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• computer programs or spreadsheets to record all
  your yearly transactions, then that makes your
  job easier when trying to calculate your income
  and any deductions.
• What you should do next
• Find the appropriate IRS tax form for your type
  of business. If you are the sole proprietor then
  you will be able to report your business income
  and expenses on a Schedule C attachment to your
  personal income tax return. If you run your
  business as an LLC and youre the sole owner,
  then you will also be permitted to use the
  Schedule C attachment.

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• However, a separate corporate tax return on Form
  1120 must be filed if you use a corporation or
  elect to treat your LLC as one.
• Then complete the form
• Complete your Schedule C or 1120 form, and if
  youll be using Schedule C, you can go on to the
  IRS website to locate it, or if youre using the
  services of a tax professional, they will
  generate a copy of the form for you once youve
  inputted the relevant information.
• If using Schedule C, youll find it a
  straightforward way of filing your taxes as it is
  short and includes a comprehensive list of
  claimable expenses. Once youve filled it

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• in, simply subtract your business earnings and
  youll be left with your net profit or overall
  loss. Whatever number youre left with, can then
  be transferred to your personal income tax form
  and have it be included with your personal income
  tax items.
• If youre using a Form 1120, while the
  calculations will be the same as if you were
  using a Schedule C form, it requires you to enter
  more details that may not always be applicable to
  small businesses. This form is also separate from
  your personal income tax return.

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• Always be aware of deadlines
• The date of April the 15thgenerally applies when
  filing a Schedule C form, but if youre taxed as
  an S-Corp, you will need to file a Form 1120S by
  the 15th day of the third month following the end
  of the tax year, in other words, March the 15th.
  This form may not be attached to your personal
  income tax return and sent to the IRS.
• Of course, should you wish to make this whole tax
  return affair somebody elses responsibility, you
  could consider hiring a tax professional, who
  would do a lot of the hard work for you. Tax
  professionals are also fully aware of deadlines,
  changes to tax laws and regulations and will know
  exactly which forms need to be completed.

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• At Heyer Associates we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax preparation service in
  Miami. If you are looking for an accountant in
  Miami Heyer Associates would be a right option.