Here is a quick reminder of the items you need to keep in mind when filing your taxes:
Who must file: All domestic corporations must file an income tax return whether or not they have taxable income (including corporations in bankruptcy). The majority of small business owners operate as an S-Corporation or an LLC that has elected to be taxed as an S-Corporation.
LLC’s are typically “disregarded” for tax purpose unless you have elected to be taxed as a Corporation or Partnership. “Disregarded” LLC’s must report all profits or losses on the business owners’ tax return, meaning that if your LLC was set up and disregarded for tax purposes, you will not be filing a separate return for the LLC – the IRS will expect that all profits or losses be reported on your personal return appropriately.
What form to file: A corporation must generally file Form 1120 to report its income, gains, losses, deductions, and credits, and to figure its income tax liability. If you have an S Corporation, you’ll need to file form 1120S. Even if your business has no profits, you’re still required to file the return appropriately. Also, certain organizations must file special returns. For more information, see the instructions for Forms 1120 and 1120S.
When to file: You’ll need to file your taxes or file for an extension by March 16th. Failure to file your taxes or file for an extension will result in significant penalties. Even if your business has no profits, you’re still required to file the return appropriately.
The IRS estimates that 80% of business owners overpay their taxes each year. Don’t be one of them!
Finding the right CPA can be challenging. You’re looking for a strategist that knows the laws and can advise you on how to legally pay the least amount in tax possible. One of the largest expenses you have as a business owner is the tax bill!
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