Filing Taxes As a Business Owner
If you’re a business owner you have more than the quality of your sets and your staff to worry about although these are authentic concerns. You’ll also have to make sure that your taxes are prepared properly to avoid legal problems with the IRS and your state’s treasury department. The best way to do this is to get IRS tax help from a local nonprofit organization that specializes in assisting business owners with preparing taxes. You can also get free IRS tax help in the form of brochures and books which pertain to tax preparation for business owners.
If you’re the only owner of the business, you’ll need to fill out the Schedule C section of the 1040 form to prepare your taxes and if your business income is $5,000 or less you can fill out the Schedule C-EZ, which is a shortened version of Schedule C. If your business income is from rent or royalties you’ll need to fill out Schedule E of the 1040 form and if your income is from farming, you have to fill out Schedule F of the form.
If your business is a partnership, you’ll fill out the 1065 form and if your business is a corporation you’ll need to fill out a 1120 or 1120S form. If you need assistance with filling out this form, you can get free tax help from your local legal aid center where a trained lawyer in taxation issues will take you by the filing course of action so that you’ll have an accurate tax return for the business.
Here are some considerations regarding limited liability companies and taxes. A limited liability company isn’t taxed like a corporation and does not pay federal taxes. If you’re the only owner of your limited liability company, the business won’t need to pay taxes but you have to include your personal income in the Schedule C section of the 1040 form. If the LLC has more than one owner, the business won’t pay taxes but you and fellow owners will need to pay taxes on the income you earned from the business. Limited liability companies must also file a 1065 form so the IRS can verify that the information you give is correct.
If you’re a first-time business owner and need assistance with tax preparation, it’s not wise to file taxes online because you’ll need IRS help tax from a qualified specialized who can explain the rules of tax preparation and make sure you’re filing the taxes correctly.