How To File Taxes: A Helpful Checklist for Small Business Owners

Filing business taxes can be pretty overwhelming, especially if you are filing business taxes yourself for the first time, or your business taxes are complex. 

At Chaliff + Associates, we help small businesses with their taxes all the time. We’ve put together this useful checklist to help you find out how to file taxes for your small business. Let’s make sure that your taxes are correct, accurate, and submitted on time!

FIND OUT WHAT TYPE OF BUSINESS TAXES YOU OWE

There are 5 types of business taxes: Income Tax, Estimated Quarterly Tax, Self-Employment Tax, Employment Tax, and Excise Tax. 

Not all businesses pay all of these taxes, but these are the 5 main categories that you may be obligated to pay. 

Related: How Can A CPA Help Your Small Business?

INCOME TAX

C-Corporation taxes are based on the business’s net income, which is a flat rate of 21%. 

S-Corporations, LLCs, sole proprietorships, and other partnerships are taxed based on the business owner’s income tax return. As a business owner, you will report your income and pay the appropriate tax dependent upon your tax bracket. 

ESTIMATED QUARTERLY TAX

These estimated taxes must be filed by April 15, June 15, September 15, and January 15. C-Corporations pay estimated taxes as long as they expect to owe more than $500 in taxes. All other businesses require quarterly taxes if you are likely to owe more than $1,000. 

SELF-EMPLOYMENT TAX

Any individual who earns more than $400 from their business activities must report that income and pay the self-employment tax of 12.4% for Social Security and 2.9% for Medicare, which comes to a flat rate of 15.3%. 

EMPLOYMENT TAX

Any business that has employees must cover three types of taxes: Social Security and Medicare taxes, federal income tax withholding, and federal and state unemployment taxes. Some states will also require state income tax withholding.

EXCISE TAX

Businesses that conduct certain activities must also pay excise tax. This includes any business that provides communication services or air transportation, as well as businesses that sell liquor, cigarettes, fuel, and heavy equipment like trucks, trailers, and tractors. Additionally, any business that sells lottery tickets must pay excise tax. The IRS provides a full overview of excise taxes to prepare you for what you owe. 

Related: Excise Tax: What Is It And When Do You Have To Pay It?

FIND OUT WHAT TAX FORMS YOU WILL NEED TO FILE

Did you know that there are over 800 different tax forms and schedule forms created by the IRS to manage the federal tax system? Each state has numerous tax forms as well. 

The good news is that no individual or small business has to file that many forms!

Most small businesses will use a number of the tax forms in this list: 

• Schedule C, submitted with Form 1040 (reporting your income as a sole proprietor)
• Schedule K-1 (used by S-Corps and multi-owner LLCs)
• 1120 (used to report a C-Corporation’s income)
• Form 1120-S (used to report an S-Corporation’s income)
• Form 1065 (used to file information about a business partnership)
• Form 720 (used to report excise tax income)

LEARN ABOUT TAX CREDITS & DEDUCTIONS

Don’t forget to find out about all available tax credits and deductions, which can lighten your tax burden. 

Some business tax deductions might include the costs of goods sold, utilities like power and water, insurance, office supplies, SaaS payments, and more. 

Read our blog, Ten Everyday Business Purchases That Are Tax Deductible to learn more about saving money on your taxes through tax deductions.

FIND A SMALL BUSINESS CPA

If all of this tax information sounds overwhelming, don’t worry! We have seen so many of our clients go from stressed and overwhelmed by their tax obligations to confident and relieved.

Hiring a CPA to manage your accounting, bookkeeping, and taxes gives you peace of mind and a reduction in your overall work-related stress. You don’t have to be an expert in tax preparation; you just need to trust the right expert to take care of things for you! 

CHALIFF + ASSOCIATES– READY TO HELP YOU MANAGE YOUR SMALL BUSINESS TAXES

Feeling overwhelmed by business taxes? Worried? Stressed? 

Maybe you’re just irritated by how much time it takes to manage your tax obligations when you could be focusing on growing your business!

That’s where Chaliff + Associates steps in. We are here to help you manage your bookkeeping, accounting, record-keeping, and tax preparation needs with professionalism, attention to detail, and exceptional customer service. 

Schedule a free consultation today to relieve the stress around business accounting and tax prep. Book your consultation now to get started with Chaliff + Associates!