Small Business Tax Filing
Easily Identify Which Forms You Need
Filing taxes is a necessity that’s time-consuming and often expensive. If you own a small business, it can be overwhelming to do taxes on your own, which is why many hire tax professionals. Although experts can prevent mistakes and save headaches, many decide to do their own taxes in the interest of saving money. That’s why we’ve put together a Tax Form Selector.
Our Tax Form Selector will help you identify what forms you’ll need to file taxes for your business, with or without the help of an accountant or tax professional.
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Which type of business best describes you?
- Sole proprietorship
If you run a sole proprietorship all on your own, then you’ll need to fill out the Individual Income Tax Return.
- Form: Form 1040
- Resources: Sole Proprietorships
- LLC
If you own a Limited Liability Company, or LLC, than you’ll need to fill out the Form 1040 Schedule C, which accounts for profit and loss from a business.
- Form: Form 1040 Schedule C
- Resources: Limited Liability Company
- Corporation
You’ll need to fill out the U.S. Corporation Income Tax Return if you head a corporation.
- Form: Form 1120
- Resources: Tax Information for Corporations
- Sole proprietorship
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Who are your employees?
- It's just me
If you’re the only person working at your business, you’ll need to fill out the Individual Income Tax Return.
- Form: Form 1040 Schedule C and Schedule SE
- Resources: 1040 Central
- It's me and some family members
Family members who live and work with you are different than regular employees, at least when it comes to filing taxes. You’ll need to fill out Household Employment Taxes if you have family members as working employees.
- Form: 1040 Schedule H
- Resources: Hiring Family Members
- I have a business partner
If you and one other person head the company, than you’ll need to fill out the U.S. Return of Partnership Income.
- Form: Form 1065
- Resources: Tax Information for Partnerships
- Independent Contractors
For each independent contractor, you’ll need to fill out the Miscellaneous Income and Request for Taxpayer Identification Number and Certification Form. Wow, that’s a mouthful.
- Form: Form 1099-MISC and Form W-9
- Regular Employees
You’ll need the classic W2 for regular employees, as well as the W4. The IRS knows these as Wage and Tax Statement and Employee’s Withholding Allowance Certificate.
- Help! I don't know
Don’t worry- it’s actually pretty hard to figure it out. Fill out the Determination of Worker Status form to figure out whether your accountant is an independent contractor or a regular employee.
- Form: Form SS-8
- It's just me
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Is your business run from home?
- Yes
Fill out the Expenses for Business Use of Your Home to receive deductions for working from the same place where you sleep.
- Form: Form 8829 (report deductions on Line 30 of Form 1040 Schedule C)
- Resources: Work From Home? Consider the Home Office Deduction
- No
Unfortunately, you’re not eligible for any deductions until you set up shop in the kitchen.
- Yes
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Are you eligible for deductions?
- Yes
Fill out the Individual Income Tax Return, Schedule A and/or Schedule C to report your deductions. Make sure you don’t forget any!
- No
Are you sure? There may be deductions you don’t know about.
- Resources: IRS Credits & Deductions
- Help! I don't know
Using your car for business, starting a business ($5000 deduction for first year) entertaining clients, travel, education, purchased equipment, software (Section 179), charitable donations, advertising, legal and professional fees are all considered deductions.
- Yes
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Need some more help?
- The IRS can assist you
The IRS has tons of resources to help small business owners with their taxes. Consult the IRS - they’ve created material especially for you.
- Other Resources
If you haven’t found what you’re looking for, take a peek at some of these helpful resources.
- The IRS can assist you
Hire a Tax Professional
With so many forms to fill out, we recommend hiring tax professionals and accountants to untangle the complex details of filing taxes. Evading taxes is a felony, and we wouldn’t want anyone to accidentally miss anything.
Make sure you hire someone with substantial experience filing taxes. The IRS recommends checking the professional’s qualifications and reviewing the entire return before signing your name. There are plenty of able, qualified and helpful tax professionals out there, but choose wisely. Remember that any mistakes will be placed on you, the taxpayer.
