If you have a corporation or have formed LLC, every year it is necessary to file a corporate tax return. The structure of your company and how you choose to pay, and others determine the documents needed to properly file a tax return. In some cases, even if you’re a business owner, you may still have to file a personal income tax return as well as file a corporate tax return.
If you are LLC or you are hired as an employee of your company and receive a salary, that personal income must be listed on your 1040. 1040 is your personal income tax return. Some companies are considered “pass-through” entities in which the profit and loss “pass-through” the company and to member or owner of the company. Owners or members of the company are then required to list the income, profits, and losses on their personal income tax.
Schedule C lists deductions, dividends, and profits or losses the business incurred. Schedule C generally allows you to list the costs needed to run their business. For example, mileage to and from business meetings and lunches can be written off as an expense. You need an Employer Identification Number for your Schedule C for your company, which you should have received from the IRS. Schedule C is not a stand-alone document, often accompanied by your 1040 or 1120.
Form 1120 requires basic information about the company, such as the Employer Identification Number, a list of all deductions and compensations for your executives or board. Form 1120 also includes lists of other schedules that may or may not be related to your business. For example, Schedule A list includes the cost of goods sold, and schedule K includes information about your business, such as the type of accounting and business type.
If you are in a partnership; For example, a limited liability company, you may need to complete Form 1065 for related income. Partnership, according to the IRS does not pay taxes on their income. However, the profit and loss pass through to partners personal tax returns.
Other forms and taxes
If you have employees or independent contractors, you must file other forms too. For example, W-2 and W-3 forms should be sent to the Social Security administration if you withheld social security and health insurance from your employees. You must electronically file a corporate tax return on IRS Form 944 for federal unemployment taxes as well.
For each independent contractor, you pay more than $600 for services or works completed, you must include Form 1099-misc. If you paid more than $ 10 in royalties or broker payments you may have to issue a 1099-misc too. Some forms have different deadlines. Talk to your lawyer or accountant to determine the dates and deadlines of paying various corporate taxes.