Small business tax return preparation and filing instructions is a core service offered to our clients. Whether your company is a C corporation, S Corp, Limited Liability Company, Partnership or Sole Proprietor a properly prepared tax return can be filed to minimize the tax owed. Over the years, 100's of small business Federal and State tax returns have been prepared for both service and manufacturing company clients.
Hirsch Tax Pros are here to help you file your business return, based on your business type:
If you decided to keep it simple and structure your business as a sole proprietorship, you’re in luck. The paperwork and tax filing requirements are far easier as a sole proprietor than for any other type of business.
As a sole proprietor, you are the business. We will report all of your business income and expenses on a Schedule C, which we file with your personal income tax return (Form 1040). The business itself is not taxed separately.
You don’t have to worry about the net worth of your Schedule C business from year to year, because you and the business are the same.
If you have more than one business, we report each business activity on a separate Schedule C. If you have a farm that you run as a sole proprietor, we will file a Schedule F with your 1040 individual income tax return.
If you’ve incorporated as a C corporation, we will file Form 1120 for your business return. Form 1120 is a little more involved than a Schedule C; it asks more questions and you must provide balance sheet information for the beginning and end of the tax period.
Form 1120 is not filed as part of your personal income tax return. The corporation reports any dividends or other tax information that applies to you on the applicable Form 1099.
Corporations must pay tax on their earnings, if applicable. Their shareholders also pay tax on dividends and other returns. This is called double taxation, because the same income is taxed twice.
If your business is structured as a partnership, we will use Form 1065 to file your return. A partnership, unlike a corporation, does not pay tax. Instead, it passes net income, income tax credits, and other tax items through to each of the partners – those people who have a beneficial interest in the business.
Each partner receives a Schedule K-1 that reports their share of items to report on their tax return.
When you receive a Schedule K-1 from your partnership return, you report partnership tax items on your individual tax return as income or loss.
S corporations are structured like C corporations but have a limited number of shareholders. Like a corporation, an S corporation sells shares but the income passes directly through to its shareholders.
The shareholders report the associated income and loss on their personal tax returns, using their individual income tax rates. This enables the S corporation to avoid double taxation on its income.
In this respect, it works like a partnership return using Form 1065 to file your return.
Limited Liability Company (LLC)
If your business is organized as a limited liability company and you own 100 percent of it, we can still file Schedule C with your individual income tax return, just as you would with a sole proprietorship.
You have additional filing choices with an LLC, however. Depending on whether you want to be treated as a C corporation or an S corporation, you can choose to file Form 1120 or 1120-S, respectively. Alternatively, you can file as a partnership, using Form 1065.
Hirsch Tax Pros can help you decide which of these options best solves your financial puzzle.
What are the deadlines for filing my business taxes?
Due March 15th:
- Forms 1120, 1120A and 1120S
Due April 15th (for 2015 taxes, the filing deadline is April 18, 2016):
- Form 1065
- Form 1040 Schedule C