How to file small business taxes

When running a business, your duties are limitless – managing a workforce, growing your business, promoting your products or services, handing administrative tasks, and so much more. While all areas require care and attention to detail, a particularly important one is your small business tax filing.

Taxes are inevitable. You can’t avoid them – but you can learn some tips and tricks to produce a favorable outcome on your business tax return.

Whether you’re filing small business taxes for the first time or you’ve done it for a while but aren’t quite sure you got it right – we’ll walk through the fundamentals on how to file taxes for your small business so you’re no longer in the dark.

And, if it all becomes a bit too daunting, we can take it off your plate. You can trust your small business taxes to Block Advisors, so you can get back to what you love.

How to file taxes for small business owners

Like most things, there are methods to success when it comes to filing your business tax return. Here are the steps we recommend taking while preparing your small business tax filing.

1- Gather your business records

The first step in filing taxes as a small business owner is to gather your business records. You should complete this step whether you’re hiring a tax pro to file your business tax return or doing it yourself.

When collecting your records, remember the goal is to gather proof of business income, tax-deductible business expenses, proof for potential tax credits, and records of taxes paid throughout the tax year. Profit and loss statements and other bookkeeping documents are also helpful in estimating your overall taxable income.

Our small business tax prep checklist can help, too. It has a list of all the tax and financial documents you may need to compile for your tax return.

Keep in mind that your tax and financial records vary based on the type of business entity you own, your business practices and if you have  employees, so not all business owners will have the same business records needed.

2- Determine the right forms and what you need to report on your business tax return

Once you have your records in order with all the appropriate documentation, the next step is to determine the small business tax forms you need to file. There are multiple categories of tax forms you may have to account for:

• Business expense tax forms (ex. Form 4562, Depreciation and Amortization)
• General tax forms for small business owners (ex. Form 8832 or Form 7004)
• Small business employer and contractor tax forms (ex. Form 1096 and Form 1099-NEC)
• Tax forms for retirement accounts for the self-employed and small business owner (ex. Form 8606, Nondeductible IRAs)

3- Understand the tax filing deadlines

When are business taxes due? Business tax deadlines vary based on your business entity:

It’s typically March 15 if you’re an S corporation owner or partnership. IRS Form 1065 is also due March 15 for calendar-year partnerships. If you want to learn more about Form 1065, read our post ‘What is Form 1065?‘ to find the info you need.

It’s typically April 15 if you’re a corporation that files IRS Form 1120 or an LLC or sole proprietor who files a Schedule C and Form 1040. 

To this end you should make sure you understand the business tax deadlines for your particular business entity. The dates you’ll need depend on your unique situation.

4- Determine your filing options for your business tax return

You have many options when it comes to filing your business tax return. Here are some of the services we offer:

• Businesses of all types can file with a Block Advisors certified small business tax pro. Our tax pros have the expertise to handle the most complicated taxes. And you have many ways to file. You can:
  • Make a one-on-one appointment in an office near you.
  • Simply hand off your taxes and our pros will do the heavy lifting on your business tax return. Then, you can approve it and file it with ease!
  • Virtually work over chat, phone, or video.
• Self-employed individuals may be able to go the do-it-yourself route and file small business taxes online. Using our intuitive, guided tax prep you get the best of both worlds. You can file your IRS Schedule SE on your own while also gaining the confidence that you’re accurately filing your taxes with unlimited live expert help.

More small business tax filing guidance

Point blank – taxes are overwhelming to file without the right resources. If you’re not confident you have the time or expertise to tackle taxes on your own, we’re here to help.

If you want help, Block Advisors small business certified tax pros can assist with not only small business taxes, but also payroll and bookkeeping. We can even get you started registering your own entity with our business formation products and services.  

Rely on our team of small business certified tax pros to get your taxes right and keep your business on track.

File with a tax pro.