At Global Resources, we pride ourselves as being recognized by clients and industry experts as a premier strategic tax advisory firm offering extraordinary dimension and expertise. We are attuned to the fluid nature of ever-changing tax laws, and work diligently to ensure your success.
Filing taxes can be a time-consuming and tedious process, yet it is mandatory. By working with the tax experts at Global Resources LLC, we ensure your taxes are completed flawlessly, while allowing you the time needed to effectively run your company.
When it’s time to file a federal income tax return for your small business, there are various ways you can do it, depending on whether you run the business as a sole proprietorship or use a legal entity such as an LLC or corporation. Each type of entity requires a different tax form on which you report your business income and expenses. Regardless of the form you use, you generally calculate your taxable business income in similar ways.
If you’re already looking ahead to the next tax season, here are some general tips for strategic tax planning.
1. Gather all business records. Before filling out any tax form to report your business income, you should have all business earnings and expenses available. We suggest using a computer program to organize and keep track of all transactions during the year.
2. Find the correct IRS tax form. Selecting the correct form to report earnings depends on how you operate your business. Small business owners often use a sole proprietorship, which allows them to report all of their business income and expenses on a Schedule C attachment to their personal income tax return. If you run the business as an LLC and you are the sole owner, the IRS also allows you to use the Schedule C attachment. If you use a corporation or elect to treat your LLC as one, you are responsible to prepare a separate corporate tax return on Form 1120.
3. Fill out your Schedule C or Form 1120. Be sure to use correct information and file documents properly. After processing your paperwork, it can be quite tedious and time-consuming to make additional changes.
4. Know the filing deadlines. When you use a Schedule C, it becomes part of your Form 1040 and therefore, no separate filing deadlines apply. It is generally subject to the same April 15 deadline. If you need to file a Form 1120, you must file it by the 15th day of the third month following the close of the tax year, which for most taxpayers is March 15. You cannot send this form to the IRS with your personal income tax return.
To learn more and / or to schedule your complimentary appointment with the business experts at Global Resources LLC, call us at 855-338-0266.
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