Whether you’re an experienced business owner or just starting a business, we understand your tax needs and are here to help!
Running a small business is difficult enough without devoting nights and weekends to tax preparation and tax filing. We can help you with every aspect of your tax preparation and planning. In the event of a tax audit, we are authorized to appear on your behalf before the Internal Revenue Service.
Sole Proprietors and Single Member LLC’s
Are you self-employed and operate your business as a sole proprietorship or a single member LLC? Your income and expenses from this type of operation are reported to the IRS using Schedule C, along with supporting tax forms as needed. The net profit is used to calculate the amount of self-employment tax and income tax. The net profit, self-employment tax and income tax are reported on your personal tax return, Form 1040. There is one exception.
A single member LLC has the option to file proper paperwork with the IRS to elect taxation as a corporation, typically one known as an S-corporation. If so, the corporation has to file a tax return separate from your personal tax return. The due date for the corporate tax return is about a month before your personal return is due. It is vital to accurate tax reporting to always have your corporate return completed before your personal return as there is financial data that flows from the corporate return onto your personal return. Your S-corporation does not pay income tax on the corporate return. The corporation’s income, some deductions and some credits are reported on the personal return and the tax, if any is due, is part of the personal tax due.
Multiple Member LLC’s, Partnerships, S-Corps
The default tax status of this type of LLC is that of a partnership. The LLC members can file proper paperwork with the IRS to elect a different tax status, usually that of an S-corporation.
The business is required to file it’s tax return first and then issue a tax form, K-1, reporting each partner’s or shareholder’s share of income, deductions and credits that has to be reported on the partner’s personal tax return.
Don’t Pay More Taxes Than Required!
The tax law allows certain deductions and cuts for individuals and businesses. Make sure you aren’t paying more than mandated by working with a certified tax professional.
New business owners may find the following IRS links helpful:
- Starting a Business https://www.irs.gov/businesses/small-businesses-self-employed/starting-a-business
- Business Structure https://www.irs.gov/businesses/small-businesses-self-employed/business-structures
- Business Taxes https://www.irs.gov/businesses/small-businesses-self-employed/business-taxes
- Employer Identification Number (EIN) https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers-eins