{"id":233744,"date":"2025-05-10T01:28:31","date_gmt":"2025-05-10T01:28:31","guid":{"rendered":"https:\/\/peraltafinancing.com\/accounting\/small-business-tax-checklist-how-to-prepare-for-tax-season\/"},"modified":"2025-05-10T01:28:31","modified_gmt":"2025-05-10T01:28:31","slug":"small-business-tax-checklist-how-to-prepare-for-tax-season","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=233744","title":{"rendered":"Small Business Tax Checklist | How to Prepare for Tax Season"},"content":{"rendered":"


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There are two types of people come tax time. You\u2019ve got the ones who are excited and file their taxes on the first day they can. And, you\u2019ve got the ones who moan and groan and file at the last minute. Which one are you? <\/p>\n

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Maybe you\u2019re the second one\u2014the person whose least favorite thing in the world is filing your small business tax return<\/a>. If that\u2019s the case, you need a small business tax preparation checklist.<\/p>\n

Or maybe you\u2019re the first one\u2014the one who can\u2019t wait to file your company tax return. In that case, maybe you made your own small business tax return checklist already and want to compare.<\/p>\n

Whatever the case, read on to check out our small business tax prep checklist \u2026 and say goodbye to procrastination.<\/p>\n

Skip Ahead<\/h3>\n

Small business tax preparation checklist<\/h2>\n

Some might argue that checking things off their to-do list is fun. Fun or not, using a checklist can help you stay organized and accurate. And who wants to miss out on tax deductions or pay penalties due to a sloppy return?<\/p>\n

Use this small business tax preparation checklist this tax season to help you stay on top of your responsibilities:<\/p>\n

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1. Pick your poison (tax form, that is)<\/h2>\n

Your first task on the small business tax prep checklist is finding out which form you need to file. There isn\u2019t a standard form that all small business owners use\u2014your form depends on your business entity<\/a>.<\/p>\n

Are you a sole proprietor or single-member LLC owner? Use Schedule C<\/a>, Profit or Loss from Business, and attach it to your personal income tax return (Form 1040).<\/p>\n

Or, are you a partner in a partnership or part owner in a multi-member LLC? If so, file Form 1065, U.S. Return of Partnership Income, and attach Schedule K-1 (Form 1065).<\/p>\n

And for those of you needing a corporate tax preparation checklist, your tax form is Form 1120, U.S. Corporation Income Tax Return. Multi-member LLCs taxed as corporations also use Form 1120.<\/p>\n

Last but not least, the tax form you must use if you structure as an S Corp is Form 1120-S, U.S. Income Tax Return for an S Corporation.<\/p>\n

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2. Understand your tax filing deadline<\/h2>\n

The next step in your small business tax preparation checklist is to know when are business taxes due<\/a>. Your filing deadline depends on your business structure.<\/p>\n

Sole proprietorships, single-member LLCs, multi-member LLCs taxed as corporations, and corporations that end their tax year on December 31 must file by April 15. This is the same due date as personal tax returns.<\/p>\n

Partnerships, multi-member LLCs, and S Corps have a tax filing deadline of March 15.<\/p>\n

If March 15 or April 15 falls on a weekend or holiday, you have until the next business day to file.<\/p>\n

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3. Gather and analyze your records<\/h2>\n

All steps in the small business tax prep checklist are important. But this one is arguably one of the lengthiest, most intricate, and important parts in preparing an accurate tax form.<\/p>\n

Filling out tax information isn\u2019t a guessing game. You can\u2019t arbitrarily input income and expenses based on a hazy memory. You need to have hard facts in front of you if you want to complete an accurate return.<\/p>\n

Locate your taxpayer identification number. This is essential. How else will the IRS be able to identify your business? Depending on your business structure and whether you have any employees, you may be able to use your Social Security number. Otherwise, you need to use your Federal Employer Identification Number (FEIN<\/a>).<\/p>\n

Next, gather and analyze your balance sheet and income statement. If you use accounting software, generating these reports should be easy to do. Your income statement lists your business\u2019s income, expenses, and bottom line throughout the year. And, your balance sheet shows your assets, liabilities, and equity.<\/p>\n

In addition to your financial statements, you need some supporting documents. Gather your receipts, bank statements, credit card statements, and payroll records to back up your work.<\/p>\n

Also, be prepared to locate copies of your estimated tax payments. And, find your previous year\u2019s business tax return.<\/p>\n

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Say goodbye to unnecessary tax season-related stress.<\/p>\n

Download our free guide on 10 recordkeeping tips to make tax time a breeze!<\/p>\n<\/div>\n<\/div>\n<\/div>\n

4. Look for tax deductions and credits<\/h2>\n

Next stop on the tax preparation train is finding out if you qualify for a tax break. Business tax credits<\/a> and deductions are a great way to lower your tax liability. And depending on your business, you may qualify for a few.<\/p>\n

Businesses can claim tax deductions and credits for qualifying expenses. Generally, tax credits encourage businesses to take some sort of action that benefits others (e.g., offering reasonable accommodation).<\/p>\n

Take a look at these tax credits you might qualify for:<\/p>\n

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Small employer health insurance<\/p>\n<\/div>\n<\/div>\n

And, here are some examples of expenses you might be able to claim a tax deduction for:<\/p>\n