Filing Taxes 101
Filing your personal tax returns can be a daunting task so filing for your business may be the last thing on your mind. Unfortunately, for most business owners there is no escaping tax filing, so you might as well start understanding how the process works!
There will be a lot of paperwork involved, so if you have stayed organized since your businesses inception this may be an easy task for you.
First you want to identify and understand that all tax forms are contingent upon the type of organization you have formed. There is a big difference when it comes to filing taxes for a sole proprietor, corporation or a limited liability company. There are many other business structures around, however these are the most common. If you are unsure what type of structure fits your business visit the Internal Revenue Service website and review the business filing instructions, this will give you a better idea which forms are right for your particular business.
Once you figure out what documents you need to file, print them out for review. If you are unsure bring them to your accountant so the two of you can go over the proper way to fill out forms. There will be a lot of paperwork involved, so if you have stayed organized since your businesses inception this may be an easy task for you. Documents such as the business income and expenses and up-to-date financing statements for the tax year you’re filing for will be necessary in order to complete an accurate tax return.
The next step seems self explanatory, however is commonly overlooked. It is extremely important to not skip ANY instructions on your tax form! Make sure each section is completely filled out and if you are unsure of any specific line be sure to inquire with an expert before submitting a final form. Once you have finished documenting all applicable sections, make sure to sign and date all forms. Make photo copies for your personal records, and if you plan on submitting your documents electronically you will need an e-file provider.
Most importantly, pay attention to the dates that you can start filing your paperwork and deadlines for submission. Good luck to all business owners this tax season!