top of page
Search

What Tax Forms Do You Need to File For Your Business Return?



Trying to figure out which tax forms to use when filing for the income tax return of your small business can be overwhelming. Based on your business type, here’s how you can report your earnings.


1. Sole proprietorship


When you are a sole proprietor, you have to file your business earnings and expenses on a Schedule C, which is then attached to your personal income tax return (Form 1040).


Having more than one business is not an issue. All you have to do is report each business activity on a separate Schedule C. You can file Schedule F with your 1040 individual income tax return if you own a farm and run it as a sole proprietor.


Sole proprietors are considered self-employed, therefore they are subject to self-employment tax (Social Security and Medicare).


2. C Corporation


If your small business is incorporated as a C corporation, you have to prepare a business income tax return with Form 1120, separate from your personal taxes.


All dividends or other tax information that applies to you must be reported using Form 1099.


3. Partnership


You must file your return using Form 1065 if your business is organized as a partnership. A partnership does not pay taxes. Instead, each individual member will get a Schedule K-1 reporting his or her share of the profit/ loss for the year. Each member pays taxes on the share of profits reported on their personal tax return.


When you receive a Schedule K-1, you must report your itemized partnership tax on Schedule E, Part II of your Form 1040 Individual tax return.


4. S Corporation


If your small business is a C corp or an LLC but has elected S corporation status, you must file a separate corporate tax return; you must use Form 1120S. Shareholders must report their share of profit or loss with a Schedule K-1 on their personal taxes. Doing this will allow the S corporation to avoid double taxation on its income.


5. Nonprofit Organization


File Form 990 when reporting information such as income, expenses, and balance sheet information for nonprofit organizations (ministries, charities, and many educational organizations).


You must provide information about the officers of the organization and the sources of your funds.


If you are being paid by the nonprofit organization, you will receive a Form W-2 so you can report your earnings on your individual income tax return.


6. Limited Liability Company (LLC)


If your business is categorized as a limited liability company and you own 100% of it, you can file Schedule C with your individual income tax return, just like a sole proprietor.


You are required to file either Form 1120 or 1120 S, depending on whether you want to be treated as a C corporation or an S corporation. You can also file as a partnership, use Form 1065 to file.


Deadlines


If the tax return deadline falls on a weekend or holiday, the deadline is the following business day.


March 15:

  • Forms 1065 and 1120S


April 15:

  • Form 1120

  • Form 1040 Schedule C

0 views0 comments
bottom of page