What to file for your business?
To determine the income tax form needed to file for your business depends on the business entity established at the onset of the business. Review your business records to determine the type of entity formed and follow the IRS’s guidelines on how to report business income. Each type of entity has a different tax filing requirement. The different types of businesses are sole proprietorship, general or limited partnership, C corporation, S corporation, limited liability company (LLC), and limited liability partnership (LLP).
Sole Proprietorships do not file a separate tax return for their business. The business activities should be reported on Schedule C or Schedule C-EZ of the owner’s personal income tax return. For partnerships and LLC, income is passed through to the individual partners and taxed at the individual level. While an income tax return is not needed for partnerships or most LLCs, these entities must file an annual information return supplying the IRS with information on the payments made to their individual partners and members. Separate income tax returns are required for corporation and their owners/shareholders. Income from a C corporation is taxed at both the corporate level and individual level. Income generated by an S corporation is passed to the individual shareholders of the corporation and subject to taxation at the individual level. A separate tax return is required to be filed by an S corporation.
To read more on this article, visit Filing business tax returns.
If you have any questions or information regarding the correct form to file for your business, please contact Wood, Atter & Wolf, P.A., in Jacksonville and Ponte Vedra Beach, Florida.
