Whether you’re a sole proprietor, LLC, or corporation, April is tax month. Although you can file for an extension, the U.S. government isn’t changing the deadline this year. You’ll need to have everything ready to go for your business by April 15.
If you operate on a different fiscal year, the IRS needs you to file your taxes on the 15th day of the fourth month following the end of your 12-month accounting period. When you have an S-Corp, you have three months following the close of your tax year.
Your business structure dictates how you’ll file each year. If you’re taking care of this errand yourself, here are the steps you’ll want to follow.
1. Get Your Records Ready
You’ll need all of your business records this year. It’s the easiest way to ensure all of your gross income and overall expenses get reported. If you use spreadsheets or software to calculate this information, you’ll want to export that data to your accountant or into the tax documents.
2. Find the Forms
The IRS provides several forms that may or may not apply to your business. One of the most confusing is the Schedule C attachment that sole proprietors use for self-employment income. If you are a corporation, you’ll need Form 1120 or Form 1120S.
3. Fill Out the Documents
When you use tax software to fill out your documentation, the process is relatively smooth for most small businesses. You’ll need to input your accounting figures into the appropriate spots to ensure you get everything noted appropriately.
4. File Your Taxes Appropriately
If you are a sole proprietor with a Schedule C, you can file your taxes online. For 2021, you might need to send in paperwork associated with COVID-19 credits separate from the usual e-filing process.
Please remember that Form 1120 or Form 1120S must get filed separately from your personal taxes.