Have you filed your small business taxes already? The tax deadline for many LLCs and LLPs (March 15) is quickly approaching, so don’t delay! Filing business taxes can often be more cumbersome and involved than doing your personal taxes, so here are a few tried and true tips to help you file your small business taxes confidently:
Get comfortable with the latest small business tax forms
The forms you have to file depend on the type of business entity you have. After all, you want to be mindful of what you need to submit. Get familiar with the forms on the Internal Revenue Service’s (IRS) website.
You can also go to a business tax solution like TurboTax Live Business because the system or a live tax expert will guide you through which forms to check for and file for your business.
Some of the most used forms dependent on the small business entity include Form 1065, filed for partnerships and multi-member LLCs, and Form 1120-S for S-Corps. If you own a business with another person, such as a partnership, then you will be issued a K-1 to report your share of the income, credits, and deductions.
If you’re waiting for a particular form like a K-1, you can file for an extension to buy yourself more time to file correctly.
Gather your business receipts and maximize your deductions
If you haven’t done so already, gather all your receipts for business deductions. Anything purchased for business use and operations in 2023 can be considered for a deduction. An obvious example is business equipment, supplies, and devices or rent or work-related car costs and mileage. Other less obvious examples include interest and bank fees, licenses and taxes, and advertising. These expenses should be reflected on your business income statement and will lower your income taxes. Consider working with a tax expert with a robust knowledge of your business’s industry and what deductions are available. Often, it’s best to use a credible tax service that’ll use loads of data points from all industries and locations to ensure you’re not missing out on deductions and maximizing your business tax credit.
Navigate any business filing complexities by using a tax service and/or professional
Many tax nuances and rules apply to small businesses; frankly, it can be a bit tricky and overwhelming. Long gone are the days when we had to do business taxes using pen and paper and mail it in. While that may still work for some people, there’s greater room for error, missed opportunities, and higher risk—all of which can be avoided if you go straight to a tax professional or tax service that can match you with a dedicated expert who specializes in business taxes and can prepare, sign, and file your taxes. Going to an expert or service is truly unmatched in helping you navigate the complexities of the latest tax regulations and requirements and ensuring you’re compliant.
If you have everything you need to file, connect with a tax expert to start the process now. If you run into any problems or need more time, you can always file an extension for your business via the IRS website. You can also file for an extension using TurboTax Live Business on your own or have an expert file for you at no cost.
It’s important to know that if you miss filing an extension by the March 15 deadline, no other extensions can be filed after that deadline, and you’ll be subject to $235/month per partner penalties by the IRS.
Lisa Greene-Lewis is a certified public accountant and TurboTax tax expert.
Tax deadline stock image by Thinglass/Shutterstock
