Featured

Essential Tax Forms Every Business Must Know Before Tax Season Rolls Around

Tax season may quickly turn into a time for paperwork, document review, and deadline stress. This can be valid even for a CPA if multiple clients need last-minute help with their tax file.

If you are a business owner in Watertown, preparing to file your taxes, or if you decide to hire services of tax preparation in Watertown, WI, there is a compiled list of essential forms that you can keep handy. This list will help you meet your tax responsibilities without skipping any payments that are likely to result in fines. Having all the required paperwork on hand can also help you submit it on time if you choose to seek filing assistance.

Necessary tax forms you must know about your business before the tax season rolls around.

Here are some of the essential forms that every business should keep handy for tax season rolling around:

  • Schedule C

Schedule C is used to track a company’s profit and loss over the course of a financial year. You must add the entire amount of revenue generated or detect any losses made during the year.

Schedule C must be added to Form 1040 when providing a personal return.

To successfully file this form, you must have a profit and loss statement, balance sheet, inventory data, and a list of expenses.

Schedule C is used by:

  • Single-member limited liability company
  • Sole proprietor.

The due date of this form is 15th April.

  • Schedule SE

Schedule SE is used to file taxes for Medicare and Social Security. This form is used together with Schedule C for reporting self-employment tax.

Schedule SE is required for sole proprietorships and single-member limited liability companies.

The due date is 15th April.

  • Schedule k-1

The Schedule K-1 is used to record partnership income returns. Furthermore, Form 1065 is used to report the partnership’s total net income or losses.

Note:

The IRS will only accept Form 1040 if Schedule K-1 is filed with it.

  • Make sure all partners are conscious of the need to file a Schedule K-1.
  • Partners are required to record company profits and losses on their personal income tax returns.
  • Schedule K-1 should be filed along with Form 1065.

Schedule k-1 is used by:

  • Single member LLCs
  • C corporations
  • Partnerships

The due date is 15th April.

  • Form 1120

Form 1120 (US Corporation Income Tax Return) can be utilized to report income, losses, gains, deductions, and credits for corporations.

The due date is 15th April.

It is hard to keep track of these forms while concentrating on other aspects of your business. Some companies fail to submit tax forms on time, leading to fines and other penalties. When it comes to filing papers on time, all startups face a similar issue.

Leave a Reply