It’s hard to believe that the year has already come so far! Before you know it, it will be time to file your business tax return again. Looking for some tips? Follow our 4 suggestions to make your tax season smooth sailing.
Give Yourself Time
No one likes to spend time filling out their business tax returns, but don’t give in to the temptation to put it off. Start now, so you aren’t pressured to get it done in a short time as the filing deadline approaches. You should keep in mind that in addition to the time it takes to make calculations and fill out the forms, you‘ll also need to spend time gathering together your backup documentation.
Having all your records together (taxpayer identification number, financial records, backup for earnings and expenses) before you begin will make the process go smoother. It will help you ensure your return is correct and that you’re not leaving any deductions on the table. It will also help you determine which tax forms you’ll need.
Find the Right Form
The way you operate your business will determine which tax form to use. It’s really important to have your business properly classified, because not doing so could result in overpaying taxes. For example, if your business is a sole proprietorship, you should report your business income and expenses on a Schedule C attachment to your personal income tax return. If your business isn’t a sole proprietorship, the following are forms you may need, depending on your business structure:
Pay Attention to Deadlines
Now that you’ve done the hard work, make sure you know when the different filing deadlines fall. Some years, a deadline may fall on a weekend or holiday. If it does, then the deadline is extended to the first business day immediately after. This tax season, mark your calendars for these dates:
- March 15, 2023: Calendar year partnerships and multi-member LLCs must file Form 1065 with the IRS and distribute Schedule K-1s to partners by March 15. Calendar year S corporations also must file Form 1120-S by this date.
- April 17, 2023: Sole proprietorships and single-member LLCs must include a Schedule C to be filed with the owner’s personal tax return by this date. Many corporations also must file Form 1120 by this date.
More Tips for Managing and Growing Your Business
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- Gather all your required documents to successfully do your taxes, and make sure you have all the correct forms for filing based on your business classification.
- Start your information gathering process early. The sooner you start, the more time you’ll have.
- Mark your calendar with the appropriate deadline for filing so you won’t have to rely on your memory.
This content is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.