Small Business Tax Preparation is no small tax, you have probably discovered this if you are growing a business. Even someone who has done their individual taxes for years can feel like business tax preparation is a completely separate arena.  Well, you still need to get it done. Fortunately, we are here to assist. Take a look at what you  need to know about managing taxes for your small business. 

What To Know When Filing Business Taxes

If this is your first year filing business taxes, the first step is selecting the right IRS filing form. This will depend on how you registered your business. Here is a quick guide for selecting the right tax form: 

*  Sole Proprietorship: You may be able to add income and expenses for your business to your personal tax return using the Schedule C. 

* Sole Owner of an LLC: The Schedule C may work for this structure of business.

* Corporation: You will probably need to use Form 1120.

* Limited Liability Corporation: You will probably need to use Form 1120.

If you are still unsure about which form to use, that is what Dynamic Tax Services here for to assist you into getting a clearer picture. 

How Do I File Business Taxes?

Start by gathering all of the financial records and receipts tied to your business for the year. This includes things like travel expenses, employee compensation, non-employee (contractor) compensation, and home offices expenses. 

If you are filing a Schedule C, this two page form allows you to subtract all business expenses for the year from your earnings. This will give you your net profit or net loss for the year. You will move the number you get over to your personal income tax form. If you are filing Form 1120, you will still subtract your expenses from your earnings like you would with a Schedule C. Though that is similar, you will supply additional details about your business before filing the form separately from your personal taxes. 

DEADLINE~DEADLINE~DEADLINE...You Ask, When Are Business Taxes Due?  

Business Tax Preparation requires most to re-learn tax deadlines because business tax deadlines are not the same as your personal tax deadlines. First, you will need to keep up with estimated quarterly taxes if you except to owe at least $1000.00 in taxes for the current tax year after subtracting your withholding and refundable credits when filing and individual tax return. 

Corporations 

Generally, corporations are required to make estimated tax payments if they expect to owe $500.00 or more when filing tax returns. Due four time per year, quarterly taxes need to be paid by April 15th (TAX DAY), June 15th, September 15th and January 15th, based on a standard tax year's calendar. 

If you file using Schedule C, your business taxes will usually be due on April 15th just like your personal taxes, because its considered part of your IRS Form 1040. Though that could be the case, people who file using Form 1120 are required to file their tax returns by day 15 of April in the following tax season. 

In most cases, that happens to fall on April 15th as stated. If you are using Form 1120S or Form 1065, it is a bit different. These forms must be filed on day 15 of March after the close of the tax year. The tax calendar is actually pretty crowed if you own a business that employs other people because you also have to meet the quarterly deadlines for paying FICA (Federal Insurance Contributions Act) and FUTA (Federal Unemployment Tax Act) taxes.  In addition please note that it is necessary to stay on top of reporting FICA and FUTA withholdings, submitting W-2s, and submitting 1099s. 

How Much Will A Small Business Make Before Paying Taxes? 

Typically, you are required to file a tax return if you earn at least $400 from a business in a year. When filing the required forms does not necessarily mean you will owe taxes. The specific threshold for your business will depend on how your business is registered, which is utilized to determine the IRS form use to file and how much you earn in other income. 

What Documents and Information Will A Tax Professional Need For Small Business Taxes? 

If you intend to hire Dynamic Tax Services, make sure you gather all your documents. This includes, but not limited to, cash-flow statements, balance sheets, and income statements. You should also gather all documents related to asset activity, vehicle usage, office expenses, legal expenses, property taxes, paid quarterly taxes (if applicable) , insurance expenses, and payroll. Business expenses often help reduce your tax liability through deductions. 

We Are Here To Make Sure You Never Miss Another Deadline

The IRS, as well as state and local governments, imposes strict deadlines for business tax obligations. Missing these tax deadlines and failing to comply with payroll and sales taxes negatively impacts your bottom line and may result in fines and for non-compliance. 

As your trusted advisor, we make sure you stay on top of your tax obligations and avoid penalties and fees that reduce your profitability. 

Experienced Tax Professionals You Can Trust