Checklist for Tax Preparation: What You’ll Need for Small Business Tax Filing

The beginning of the year can be a hectic time for small companies, and finding the time to prepare for tax filing might seem like a job in and of itself.

Understand your deadlines.

Tax due dates can vary depending on your company type. The tax deadline for businesses that operate or are taxed as a sole proprietorship, single-member LLC, or C-Corporation is April 17, 2018. You’ll have two additional days to file this year since our usual Tax Day, April 15th, occurs on a Sunday and is followed by a municipal holiday in Washington DC.

But, whether you operate or are taxed as an S-Corporation or Partnership, the tax filing date has been moved from April 15th to March 15th. Check out our blog article regarding tax deadlines and other things you should be aware of.

Collect all necessary documentation

Before you fill out any tax form to report your company revenue, you should have all of your business profits and costs in front of you. It’s a good idea to ask your tax accountant what further papers are required, but in the meanwhile, here’s some information to keep on hand. :

Income
Gross sales or service receipts
Sales figures
Allowances and returns
Interest on business checking/savings accounts
Inventory All costs
Payments made to subcontractors in the form of commissions
Commercial insurance
Interest on a business loan
Professional charges
Office equipment
Renting an office space

Choose the appropriate tax form.

The following forms may be required for each sort of small business:

Sole Proprietorship

Schedule C (Form 1040), Profit or Loss from Business or Schedule C-EZ (Form 1040), Net Profit from Business, U.S. Individual Income Tax Return

Partnership

1065, U.S. Return of Partnership Income

C-Corporation

1120, United States Corporate Income Tax Return

S-Corporation

1120S Sch. K-1 1120S Sch. K-1

LLC
The IRS will treat an LLC as a corporation, partnership, or as part of the LLC’s owner’s tax return, depending on the LLC’s option and the number of members.

If the LLC is treated as a partnership, you must file Form 1065, U.S. Return of Partnership Income.
If the LLC is included on the company owner’s personal tax return, a 1040, U.S. Individual Income Tax Form, will be used.
If the LLC is a company, you will file a 1120, U.S. Corporate Income Tax Return.

If you’re unsure which form to use, consult an accountant or other tax specialist.

Obtaining an extension

If you are unsure if you will be able to submit your company taxes by the deadline, you may consider requesting an extension. An extension of 5-6 months from the due date is possible. Consequently, if your tax return is due on March 15th, you will have until September 15th to submit. An extension, however, does not prolong the due date for any payments. To prevent late penalties, you should still make any payments that are owing by the original due date.

The majority of businesses will utilize Form 7004 to request an extension. If your company activity is being recorded on your personal tax return, you should utilize Form 4868.