One of the major duties of a business owner is tending to tax preparation. This can be difficult for small and medium businesses that don’t have the bookkeeping personnel to do the job right.
Business tax preparation is very time consuming. At a minimum, it includes estimated tax payments, completing the proper IRS forms, keeping documents in order and filing your company’s taxes. For your employees, you have local, state and federal tax duties including withholding taxes and preparing along with filing W-2 forms for each employee. If these tasks are weighing you down, Slaton Financial Services is the answer. Call during business hours or contact us now.
Depending on Slaton as your business tax preparation service comes with all sorts of benefits including the fact that our expert staff keeps up with all of those local, state and federal guidelines. With a worldwide pandemic to consider, we keep up with those changes as well. For instance, the IRS will open the tax season on February 12, 2021, which is past the typical start date. Furthermore, the IRS is asking taxpayers to file electronically this year if possible to help with the processing of tax returns.
Here are some basics of business tax preparation that you need to be familiar with as the CEO or owner of a business:
Tax Forms
Choosing which form to file can be confusing. It all depends on your business and its legal designation. For a sole proprietorship or single-member LLC you will use Schedule C, Profit or Loss from Business attached to a personal income tax return using Form 1040. If you are in a partnership, part owner, or in a multi-member LLC, you will file Form 1065 – U.S. Return of Partnership income with Schedule K-1 attached.
If you need a corporate tax return checklist or are a multi-member LLC taxed as a corporation, then you use Form 1120. If your business is structured as an S Corp, you use Form 1120-S, U.S. Income Tax Return for an S Corporation. At Slaton, we make all of this easy for you by keeping track of forms, deadlines and requirements so you can concentrate on what matters most – your business’s bottom line. If you are our client, we are happy to get you the forms you need.
Record Collecting
You will need to gather all the information required to complete your tax preparation. Along with your taxpayer identification number, you will need to collect your income statement which includes your business income and expenses for the year, and the balance sheet which shows liabilities, assets and equity.
When entering information on your tax return, you have to work with factual numbers not estimates, and you need the supporting documents to prove the accuracy of your financial statements. Those documents should include payroll records, receipts, credit card statements and bank statements. You should also have copies of estimated tax payments made throughout the year along with last year’s tax return.
Tax Deadlines
Filing your taxes by the required date is imperative if you don’t want to owe fees to the IRS. So staying up to date on filing deadlines is part of the job of your business tax preparation. Just as choosing tax forms depends on your business entity, so does your tax filing deadline. When you use a Schedule C, it is part of your Form 1040 and is due by the individual filing deadline of April 15.
If you are a C-Corp filing Form 1120, it must be filed by the 15th day of the fourth month following the end of the tax year, which is typically April 15. If you are an S-Corp filing Form 1120S, it must be filed by the 15th day of the third month following the end of the tax year, which is typically March 15. To keep up with all of the federal guidelines, which are subject to change due to Covid-19, business owners can visit the IRS for federal tax deadlines. Slaton Financial also has the information you need. Call us to make an appointment to discuss your business taxes.
After choosing the proper form and collecting all of your records, you will need to complete the forms and file by the IRS deadline. This part of running a business requires attention to detail and accuracy throughout the year as your bookkeeping is maintained. This will keep you from owing more taxes or fees when mistakes are made. With our bookkeeping and payroll services, Slaton Financial can help you stay up to date on all types of taxes all year long.
At Slaton, we consider ourselves to be a partner with Dallas community businesses to reach their goals. Call us today and let us give you peace of mind as we take on your tax preparation allowing you to concentrate on running your business. If you are working late or on the weekend, just use our convenient online contact form.