855-371-0070
Are you a small business filing your 2021 federal income tax return? Working with a tax professional or accountant can not only help you stay on top of what you need as you file your business taxes but can also help you understand which deductions and credits your business qualifies for:Â
https://www.irs.gov/businesses/small-businesses-self-employed/business-tax-credits
Your Business
If you are a sole proprietor earning less than $400 (after deducting business expenses), then you won’t have to file business taxes. If you are not a sole proprietor but run a business, you will need to file taxes on how much you earned last year. You will need to file business taxes if you are:
- A sole proprietor making more than $400 (after deductions)
- An LLC
- A partnership
- A corporation
As a sole proprietor, you will need to file a Schedule C:
https://www.irs.gov/forms-pubs/about-schedule-c-form-1040
This is only needed when an extension is filed. You will also need to send in form 4868:
This is only needed when an extension is filed. If you are a corporation, you will need to complete a 7004 form: https://www.irs.gov/e-file-providers/e-filing-form-7004-application-for-automatic-extension-to-file-certain-business-income-tax-information-and-other-returnsÂ
When to File
If you are getting a refund, filing your taxes as soon as possible is always a good idea. If you will owe money, you can file and pay those later in the year if you choose. Do you need to file a business tax extension this year? If that is the case, you will want to send the IRS a completed extension form: https://www.irs.gov/businesses. Depending on the kind of business you run, you will need to fill out the appropriate form. Please note that filing an extension does not mean you can pay the taxes you owe later, just that you can file your paperwork later. You can pay it later, however, they will access interest.
Documentation
Make a copy of your business balance sheet and income statement (or “profit and loss statement”). It is where the stash of receipts and bank statements comes in handy as you’ll need them to make a list of your income and expenses. If you use a vehicle for your business, note the miles you drove last year. Your tax professional may ask for last year’s tax return if you have one. The goal is to utilize all your business tax deductions and credits, itemize what equipment you purchased, and note the square footage of the room you work in if your home is where you work.
Your tax professional will reach out to you with any questions that might arise when working on your federal tax filing. You will receive notification of the final results once your business tax return has been completed and give valuable information to help you make your next year’s return even easier. It might involve ways you can save and avoid penalties. If you owe money, you will be notified how much you will need to pay the IRS and, if you are owed money back, how you want to receive that refund.
Tax Professionals and Accountants
Working with a tax professional will involve emailing and signing E-documents giving them the authority to file your taxes. You will receive a copy of your tax document filing and how to make your payment for their services. If you want assistance filing your business taxes, we welcome you to enlist the help of our team at Corporate Capital. We offer bookkeeping and business management in Las Vegas, NV, helping businesses succeed with personal and corporate tax preparation services:
https://www.corporatecapitalinc.com/managing-a-business/tax-strategies/
We welcome you to contact us at 855-371-0070 for more information!
Source article:
https://paysimple.com/blog/filing-business-taxes/Â
Business tips for small businesses:
https://www.irs.gov/businesses/small-businesses-self-employed/filing-and-paying-your-business-taxes