Make Filing Taxes for Small Business Simple with these Steps (Part 2)

This is a guest post by Mahima Chawla, Business Development Manager at Bond Street.

Did you miss part 1 of this post? Read it here. 

Tax season is upon us. While ‘doing your taxes’ will never be the most pleasant and straightforward thing, we want to help make it as painless as possible. How? Through sharing expertise and insider knowledge.

What You Need To Do To File Taxes

When the time comes to file taxes, there are two things you need to determine; the relevant forms your business will need to file and the how you will send in your returns.

There are different required forms for different business types:

• Sole proprietorship - Schedule C (Form 1040)
• Sole owner of an LLC - Schedule C (Form 1040)
• Corporation or LLC treated as corporation - Form 1120
• S-Corporations - Form 1120S

To file taxes you can send in your forms by mail or file online via commercial software. Since there are serious repercussions to filing late, you should request an extension if you feel you will need it. Tax-filing extensions are usually granted for 6 months.  

To view the list of IRS approved electronic filing options for businesses and the self-employed, as well as useful commercial tax softwares for small businesses click here.

What to do After Filing Your Taxes

Once you’ve filed, take a moment to breath and then take some simple steps to make next tax season even simpler. Here are some tips:

• Update your accounting practices. If there are gaps or inefficiencies in your financial tracking methods consider deploying some accounting software or hiring a professional accountant.
• Aim for a small refund by adjusting your withholding. If you receive a large refund then you’ve basically been providing the government with an interest-free loan.
• Keep all of your receipts. Paper or electronic receipts are important to document to protect yourself.