How to go About Filing Your Business Taxes?

Contact Us

How to go About Filing Your Business Taxes?

You can drown into the IRS website trying to find out how to file your small business taxes. However, no one has ever been able to grow a business by drowning, so we put together a brief, plain, simple language guide to getting your small business taxes filed, irrespective of what business entity you are.

While this guide brief guide offers you a basic overview to file business taxes, you just can’t overemphasize the importance of professional tax defense partners – more on that later. From beginning to end, here’s the mission-critical information you need to get your income taxes filed.

Organize Your Records

Before starting off with anything, collect every appropriate business record. What is appropriate, you ask? Based on the type of your business entity, you’ll need a lot of things, but start here:

  • Employer identification number
  • Personal information (DOB, address, SSN, etc.)
  • Tax returns of last year

You’ll also need to gather everything related to your expenses and earnings. On the earnings side, this could be:

  • Invoices you sent to clients
  • Records of goods sold to customers
  • Sales records that jot down money coming into your business

On the expenses side, gather receipts for any costs you incurred during operation. Think of the following aspects:

  • Client lunches
  • Employee salaries
  • Mileage records
  • Office supplies
  • Rent receipts for your small business

 

Find The Right Tax Form For Your Business Structure

Now, it is time to get your hands on the right tax form after having your records sorted – and this relies on what kind of small business entity you operate. Typically, it would lie in one of the following brackets:

  • Any small business that pays contractors
  • C corporations/LLCs that elect to be corporations
  • Partnerships or LLCs with multiple members
  • S corporations
  • Sole proprietorship or LLCs with one member

File Your Taxes Online

In 2018, 92% of Americans filed their taxes online. This is because filing business taxes online:

  • Doesn’t need you to fill out paper forms
  • Gets your return to the IRS swiftly
  • Is as safer and secure than sending your forms in the email
  • Let’s you obtain your refund electronically through direct deposit

While e-filing (or finding your taxes online) with the IRS, you have two options, which are, free file and free file fillable forms. If your AGI (or adjusted gross income) for the year is less than $69,000, you may use the free file. If it’s more than that, free file fillable forms are your only option.

Apply For An Extension If You’re Late

Of course, the deadline for filing your small business tax return will rely on your business entity, however, if you’re finding yourself behind the eight balls, don’t fret – applying for an extension is always an option. Although this offers you some additional breathing room for getting your paperwork filed, it’s imperative to note that you still have to pay your approximated taxes by the original deadline.

If you’re looking for one of the best tax defense partners for income tax services and filing business taxes in Salt Lake City, BoswickTax is where you should be headed.

Share this post?

Boswick Seo