The Olympics may still be months away, but the race to get your taxes in on time is rounding the final lap. While your personal tax returns might feel like your top priority, it’s just as important to make sure your business’ paperwork is in order. Here are three things you must do before submitting your business taxes this year.
Before you fill out a single line on your IRS tax form, collect every receipt that can be considered a business earning or expense. This can entail everything from bistro bills where you took a client (expense) to the major deal your business signed before the end of the tax year (earning). Demonstrating how your company made and spent money during the year is a crucial component of receiving the correct return and avoiding any unwanted questions.
Fill Out the Form
Small Business Submission
If you’re the sole proprietor of your small business, attaching a Schedule C form to your personal income tax return is all you’ll need to file. This two-page document gives you space to list all of the business expenses you can claim for the year. Once your list is complete, transfer the total to your personal income tax form and submit the information by April 15th (April 18th for 2016!).
Large Business Submission
If you own a corporation that employs multiple people, an 1120 is an additional form you must fill out independently from your personal income tax return. When prioritizing your personal taxes over your professional ones, the time frame for your business taxes is tighter. The 1120 form must typically be submitted by March 15th as opposed to the April 15th filing deadline for employees.
Meet With a Pro
This paperwork may sometimes feel tedious, but its accuracy is crucial for your business’ success. Don’t cast aside any questions; meet with legal experts that can protect your company. Heritage Law’s tax practice group is skilled at handling all aspects of corporate and partnership taxation, as well as tax planning and tax controversy matters.