Corporate tax returns are due a month earlier, by the March 15th deadline. Partnership returns and Form 1040 Schedule C must be filed by the April tax deadline. Once you determine your business structure for tax purposes, just use the recommended forms above to file. Note that if you intend to be classified as an S Corporation, you need to complete Form 2553. If you decide you would like to be taxed in a different manner than these defaults, then you need to file Form 8832 to elect another classification. Most multiple-member LLCs will be treated like a partnership. If you are the only member of your LLC, then you will be automatically treated like a sole proprietor. They can be taxed like a sole proprietor (if they have only one member), a partnership, or even like a corporation (C or S). LLCs have a lot of flexibility when it comes to filing taxes. Some business owners choose to organize under the popular LLC structure. If you are organized as a C Corporation or S Corporation, you should file a Form 1120 or Form 1120S, respectively. A Schedule K-1 is produced for each partner and then you use that K-1 to determine the income that is reported on your personal Form 1040. If you are organized as a Partnership, you file the strictly informational Form 1065. Partnership, S Corporation, and C Corporation It’s important to keep accurate records of your business income and expenses, as you will be required to report them on your taxes. If it’s farming income, you will use Schedule F. *If your small business income is from rents or royalties, you will use Schedule E. The profit or loss from the Schedule C is then transferred to page 1 of the Form 1040, where it is included with your taxable income. In most cases, new businesses operate as a sole proprietorship. You should also check with your state about getting a state tax ID. Each entity type should apply to get a Employer Identification Number (EIN) from the IRS using Form SS-4. For the 2016 tax season we offered a range of software products and services that included TurboTax Basic, for simple returns TurboTax Deluxe, for taxpayers. But for the purposes of this article, I will stick to the most popular: sole proprietor, partnership, corporation, and limited liability company.Ĭheck with your state and local authorities to see the requirements to form a business, as well as what type of license, permit, etc. There are many business structures available today. In general, the form you must use to file your business taxes is determined by the type of business you have organized. But since there’s no getting around them, here is some basic information about the forms you’ll need to file as a new business owner. As a new business owner, taxes are probably the last thing on your mind. Congratulations on starting your new business.
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