Get Ready for your Business Taxes! (Sch C, 1120, 1120-S, 1065)

Get Ready for your Business Taxes! (Sch C, 1120, 1120-S & 1065)

Some important deadlines regarding the different business tax returns:

If you are unable to file your taxes prior to your deadline, you can file an extension to file your taxes for a total of 6 months. When you file an extension, it DOES NOT extend your deadline to pay your taxes. If you want to avoid penalties and interest, make a payment prior to the deadlines listed above.

 Here’s a list of items typically needed to prepare for a business tax return:

Revenue Records: Profit & Loss or Income Statement and a balance sheet. This can be something generated from accounting software such as QuickBooks or Xero. It can also just be a summary of the income and expenses that you have in your bank account. Some common categories are the following:

1. Cost of Goods Sold (COGS): Expenses directly related to producing goods or services sold. This might include raw materials, labor, manufacturing costs, or wholesale purchases.
2. Operating Expenses: These are ongoing costs necessary to run the business. They can include:
   • Rent or Lease Payments: For office space, store space, or equipment.
   • Vehicle Expenses
     1. Fuel
     2. Insurance
     3. Maintenance
     4. Tolls
     5. Parking
   • Utilities: Electricity, water, gas, internet, phone bills.
   • Salaries and Wages: Payments to employees, including benefits.
   • Office Supplies: Paper, ink, pens, stationery, etc.
   • Insurance: Business insurance premiums.
   • Marketing and Advertising: Costs for advertising, promotions, and marketing campaigns.
   • Professional Services: Legal fees, accounting fees, consulting fees.
   • Repairs and Maintenance: Repairs to equipment or premises.
   • Travel and Entertainment: Expenses related to business travel, meals with clients, etc.
3. Interest: Interest on business loans, credit cards, or other financing.
4. Miscellaneous Expenses: Any other expenses that don’t fit into the above categories, like bank fees, subscriptions, or dues.

Payroll Records: If you paid employees, we would need 941s and W2s that were filed for your business along with a payroll summary.

Independent Contractor Payments: If you paid independent contractors (Individuals that you paid more than $600 for products or services), you need to file 1099-NEC prior to January 31^st.  We will need a copy of the filing that you made.

Asset Purchases: Documentation for large purchases such as machinery, vehicles, or equipment. This is used to calculate your deprecation.

Loan Statements: If you have a vehicle loan, line of credit, or business loan, we will need a statement that shows the total amount of interest paid for the year.

Prior-Year Tax Return & Business Structure: If you have never filed taxes with us before, you would need to bring your last year tax return. Also, any documents that you may have that can help us determine what is your business structure. Some examples are the letter issued by the IRS when you applied for your EIN number, or a letter from the IRS regarding an entity type change.