Tax season doesn’t have to be stressful or time consuming. Small businesses should be aware of the taxes and deadlines they must meet. Here is some information to help you prepare for the 2024 tax season!
Let’s start simple. Does your business have or need an Employer Identification Number (EIN)? Generally, if your business has employees and operates as a corporation or partnership you will need an EIN, also known as a Federal Tax Identification Number. Click here to learn more.
Business Taxes: The form of business you operate determines what taxes you must pay and how you pay them. Here are the four general types of business taxes:
Income Tax: All businesses except partnerships must file an annual income tax return. Partnerships file an information return.
Self Employment Tax: Self-employment tax is a social security and Medicare tax primarily for individuals who work for themselves.
Employment Taxes: When you have employees you have certain employment tax responsibilities that you must pay, such as Social Security, Medicare, Federal Unemployment, etc.
Excise Tax: You may be required to pay excise taxes if you manufacture or sell certain products, operate certain kinds of businesses, or use various kinds of equipment, facilities, or products, etc.
For more information on this topic, please visit the IRS web site.
Determining what forms to file can be confusing. Your business structure will determine what forms to use.
Sole Proprietor:* 1040, U.S. Individual Income Tax Return* OR 1040-SR, U.S. Tax Return for Seniors* AND Schedule C (Form 1040 or 1040-SR), Profit or Loss from Business
Partnership* Information Return* Form 965-A, Individual Report of Net 965 Tax Liability* Schedule E (Form 1040), Supplemental Income and Loss* Form 1040, U.S. Individual Income Tax Return
LLC (Limited Liability Company)Depends on the structure of LLC –* If 1 owner – see Sole Proprietor* If 2 owners – see Partnership* Form 8832 – file as a Corporation
Corporation* 1120, U.S. Corporation Income Tax Return
S Corporation* 1120-S* 1120-S, Schedule K-1 (shareholders Information)
The income tax due date is the 15th day of the fourth month following the end of the tax year. This date is April 15 for calendar year taxpayers. A corporation with a fiscal tax year ending June 30 must file by the 15th day of the third month after the end of its tax year, or September 15th.
For additional information on preparing, filing or paying your business taxes click here or schedule an appointment with your CPA.
UEC Business Resource Center provides free and confidential one-on-one business advising. Call at 541-289-3000 or email uecbrc@gmail.com to schedule an appointment.
