Tax Forms For Small Businesses
Becoming a business owner is an important step in taking control of your financial freedom.
If this is your first business, you will have your work cut out for you, but overall, it is a rewarding learning experience.
One of the things that causes a lot of worry to new and established business owners alike, is tax time.
As a small business owner, you have more obligations and more factors to be aware of when looking after your business.
You also will have more forms to fill out than you ever did as an employee.
Fortunately there are resources available to ensure that the proper forms are completed.
What forms you need will depend greatly on the type of business that you are.
If you are a sole proprietor, working under your name, then you can simply file on your personal tax return.
If you're doing business under a fictitious business name, also known as a DBA, for "doing business as," you will have to file separately and that's when other tax forms will be needed.
Many freelance or independent contractors do not work under a company name, but if you run a business where people are working for you, then you should most likely have a separate company name with a separate tax ID number and you will have to file additional forms separately.
There are many tax forms you will find that you need, and some forms that you won't know if you should use.
As an employer, some forms that you will need include a Quarterly Federal Tax Return and a Federal Unemployment Tax Return.
Employers also have to complete forms for Social Security and Medicare taxes.
As a business owner you will also be required to fill out a list of your itemized deductions and to complete a Schedule C or Form 1040 that allows you to report if you had a profit or loss.
These are just a few of the tax forms you will need to complete, but it gives you an idea of how much more information you need to supply to the government as a business owner.
How to know which forms to select can be a very daunting and intimidating process.
Fortunately, there are different programs and software that can can help you generate the proper forms and help make tax time less terrifying.
If you have additional questions, you can also visit the IRS website, where you can download all the forms and instructions that you need.
If you need help filling them out, you can always enlist the help of an accountant or tax professional who specializes in small businesses.
The important thing is you are not alone! There are many avenues you can take to make sure that you are filling out the necessary forms and that those forms are completed properly.
If this is your first business, you will have your work cut out for you, but overall, it is a rewarding learning experience.
One of the things that causes a lot of worry to new and established business owners alike, is tax time.
As a small business owner, you have more obligations and more factors to be aware of when looking after your business.
You also will have more forms to fill out than you ever did as an employee.
Fortunately there are resources available to ensure that the proper forms are completed.
What forms you need will depend greatly on the type of business that you are.
If you are a sole proprietor, working under your name, then you can simply file on your personal tax return.
If you're doing business under a fictitious business name, also known as a DBA, for "doing business as," you will have to file separately and that's when other tax forms will be needed.
Many freelance or independent contractors do not work under a company name, but if you run a business where people are working for you, then you should most likely have a separate company name with a separate tax ID number and you will have to file additional forms separately.
There are many tax forms you will find that you need, and some forms that you won't know if you should use.
As an employer, some forms that you will need include a Quarterly Federal Tax Return and a Federal Unemployment Tax Return.
Employers also have to complete forms for Social Security and Medicare taxes.
As a business owner you will also be required to fill out a list of your itemized deductions and to complete a Schedule C or Form 1040 that allows you to report if you had a profit or loss.
These are just a few of the tax forms you will need to complete, but it gives you an idea of how much more information you need to supply to the government as a business owner.
How to know which forms to select can be a very daunting and intimidating process.
Fortunately, there are different programs and software that can can help you generate the proper forms and help make tax time less terrifying.
If you have additional questions, you can also visit the IRS website, where you can download all the forms and instructions that you need.
If you need help filling them out, you can always enlist the help of an accountant or tax professional who specializes in small businesses.
The important thing is you are not alone! There are many avenues you can take to make sure that you are filling out the necessary forms and that those forms are completed properly.
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