Small Business Tax Preparation Checklist
Many people are afraid of taxation and find the job complicated, overwhelming and stressful. If you’re such an individual, it could help to make your small business tax return checklist. Not only can adding anything you must do in a list allow you to stay organized, you can also bring your tasks into context. Follow the tax preparation checklist below to ensure that your small business tax returns are done correctly. For all small business accounting and tax, concerns consult the professionals in Reliable Melbourne Accountants.
Checklist to keep in mind for small business tax preparation
Know which tax return to file:
The first item on your taxation prep checklist is figuring out which tax form to file. The form you submit depends on your business entity.
Sole proprietorships: Use Schedule C
Single-member LLCs: Schedule C
Partnerships: Form 1065 and Schedule K-1
Multi-member LLCs: Form 1065 and Schedule K-1
Corporations: Form 1120
LLCs taxed as corporations: Form 1120
S Corp: Form 1120-S
Comprise your date of filing tax:
Your date for filing is subject to the framework of your company. Sole land ownerships, one-member LLCs, multi-member LLCs organized as corporations and companies terminated on December 31 are required to file a return by April 15. By December 31.
Save your notes, save your documents:
Perhaps the most difficult move in your tax advance checklist. First, enter your ID number for your taxpayer. Instead review your declaration of revenue and profits, which should be simple if you are using accounting software. Receipts, bank details, credit card details, and payroll reports will also be required. Finally, copies of your estimated tax payments and the business tax return from the previous year should be available.
look for tax deductions and credits
Look for the following tax credits you may qualify for, including:
Small employer health insurance
And consider which expenses you may be able to claim a tax deduction for, which can include:
Business use of car
Before you claim a credit or deduction, you must have physical proof and follow the IRS guidelines.
Specify if an extension is needed:
Do not give a sloppy return if you find that you will not have ample time to file by day. The extension file is, then, submitted before the tax return deadline by filing the IRS extension form.
If you can’t pay a tax liability, research alternatives:
You should know your option and pursue one that meets your needs if you can not afford to pay your tax obligation in one lump sum. The IRS offers several options, among others:
IRS installment agreement, or a monthly payment plan
Offer in compromise, or a tax debt settlement
In this case, you must still file your return on time unless you have received an extension.
Speak to your file and accountant:
Consult an accountant for the consistency of your refund. Upon consultation, you can file your tax return on the e-file or paper and quit until the upon year.
Trust the professionals at the Reliable Melbourne Accountants
Unlike other accounting firms, The Reliable Melbourne Accountants, located in VIC, AU, will never charge you for emails or phone calls and will strive for open communication with our clients. Whether you are interested in business advising, tax preparation, bookkeeping service and accounting, payroll services, Training + support for QuickBooks, or retirement planning, we have the expertise and years of experience to help. If you are ready to take the stress out of taxes, contact us online or give us a call at 1300 049 534 for a free consultation. For more tax tips, follow us on Facebook, Instagram, and LinkedIn.