Have you taken care of your small business taxes yet? If not, you should know that the deadline for many LLCs and LLPs is fast approaching on March 15, so don’t wait until the last minute! Filing taxes for a business can be more complicated than dealing with personal taxes, so here are some tried and tested tips to help you tackle your small business taxes with confidence:
First, get familiar with the latest small business tax forms. The forms you need to file will depend on the kind of business you own, so it’s important to know which ones to submit. Check out the forms on the Internal Revenue Service (IRS) website, or you can use a business tax service like TurboTax Live Business. They offer systems or live tax experts that guide you through the necessary forms for your business. Common forms for small business entities include Form 1065 for partnerships and multi-member LLCs, and Form 1120-S for S-Corps. If you run a business with someone else, such as a partnership, you’ll receive a K-1 form to report your share of income, credits, and deductions. If you’re still waiting on a specific form like a K-1, consider filing for an extension to give yourself more time to get everything right.
Next, gather all your business receipts to maximize your deductions. Make sure you’ve collected all receipts for business purchases in 2023, which can be deducted. Think about things like business equipment, supplies, rent, or work-related car expenses. Don’t forget less obvious costs like interest, bank fees, licenses, taxes, and advertising. These should all be included on your business income statement to reduce your taxable income. Teaming up with a tax expert who understands your industry might be a good idea, as they can help you identify available deductions and make sure you’re maximizing your business tax credit. A reliable tax service will use extensive data from various industries and locations to ensure you’re not missing out.
Lastly, if you’re overwhelmed by the complexities of business taxes, consider using a tax service or consulting a professional. Dealing with the nuances and rules for small businesses can be overwhelming, and while some folks might still file by hand, it’s riskier and might lead to missed opportunities. By collaborating with a tax professional or service, you gain access to dedicated experts who specialize in business taxes to prepare, sign, and file your taxes, helping ensure compliance with the latest regulations. If you’re ready to file, connect with an expert to get started. If you run into issues or need more time, remember you can file for an extension through the IRS website or using TurboTax Live Business, either independently or with expert help. Note that missing the extension filing deadline of March 15 means you can’t request another extension and could face penalties from the IRS—$235 per partner each month.
It’s crucial to keep these tips in mind as you work on your business taxes to avoid unnecessary stress and make sure everything is managed properly.
