Filing Federal Income Taxes For Your Small Business

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Filing Federal Income Taxes For Your Small
Business
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• There are several different ways in which you can
  file your federal income tax return for your
  small business, when the time comes, and it will
  depend upon whether your business is being run as
  a sole proprietorship or with a legal entity like
  an LLC or corporation.
• Both types require a different tax form to report
  the income and expenses of your business, but
  irrespective of which form you need to use, the
  way your taxable business income is calculated is
  very similar.
• Here are four steps that youll need to follow
  when filing federal income taxes for your small
  business

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• 1.Gather up your records
• Before you file any tax form to report the income
  of your business, you should ensure that youve
  got all the relevant records at hand. Youll find
  that calculating your income and deductions is
  made much easier with the use of a spreadsheet or
  similar computer program, as trying to remember
  every sale or expenditure that occurred
  throughout the year is nigh on impossible and
  more likely to be inaccurate.
• 2.Locate the correct form
• How you operate your business, will determine
  which IRS form you need to file to report your
  businesses earnings.

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• A schedule C form is attached to the personal
  income tax return, for those small businesses who
  use a sole proprietorship. You can also use a
  schedule C form if you run your business as a LLC
  and youre the sole owner. That said, if you use
  a corporation to treat your LLC as one, then you
  will need to complete a separate, corporate tax
  return on a Form 1120.
• 3.Complete the relevant form
• Fill out the appropriate form, either a schedule
  C or a Form 1120, and if using a schedule C form,
  simply subtract your personal expenses from your
  business earnings to enable you to reach a net
  profit or loss.

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• You then need to transfer this total to your
  personal income tax return form, and then include
  it with all your other personal income tax items.
• If youre completing a Form 1120, you can
  calculate your taxable business income in
  precisely the same way, but youll be required to
  give many more details that might not always be
  applicable to a small business. It is also
  entirely separate from your personal income tax
  return.
• 4.Dont forget about deadlines
• There are different deadlines, for different
  forms, and its important that

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• you take heed of them so that you can avoid late
  filing and any penalties that might apply. A
  Schedule C form becomes part of your Form 1040
  and should be filed before April 15th.
• Form 1120 must be filed by the 15th day of the
  fourth month that follows the end of the tax
  year, which again, is April 15th.
• For more details about filing your businesses
  federal income tax, you can refer to the IRS
  website or simply engage with the professional
  services of a tax and consulting firm, who will
  have all the latest information about deadlines
  and changes to laws at their disposal, and will
  ensure that you file your taxes in a timely and
  accurate manner.

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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
  Coral Gables. If you are looking for tax
  preparation service in Miami, Heyer Associates
  would be a right option.