Orlando Business Owners: Here’s How to Get Ready for Tax Season!

Mar 7

As a business owner, you know it’s unfortunately that time of the year and before you know it you will be scrambling to file your taxes. Here’s some tips to get your business ready and to take filing your taxes a smooth process.

· Get Your Documents Organized: Your CPA will generally ask for this type of information:
- Financial Reports: your annual balance sheet, annual profit and loss, annual general ledger, and fixed asset detail report
- Revenue and Income: gross sales, revenue, income, 1099 MISC, 1099 NEC, 1099 K, 1099 INT, and K-1s
- Deductions and Expenses: COGS, salaries and wages paid, 1099s sent out, and other business expenses

Figure Out What Tax Forms Are Needed: Depending on the structure of your business, you'll need to file different forms.

Sole Proprietorship and Single Member LLC: This will be recorded on your personal 1040 tax return under Schedule C
Multi-Member LLC and Partnership: Form 1065
LLC with S-Corp Election and S-Corporation: Form 1120-S
C-Corporation: Form 1120

Fill Out the Tax Forms: With your documents in hand, fill out the necessary tax forms. Make sure to have all the required information handy to avoid delays or errors in the filing process. Double-check your entries for accuracy before submitting your forms. We always recommend working with a CPA to ensure your filing is done correctly.

Know the Tax Deadlines: It's crucial to be aware of the tax deadlines for small businesses.

Sole Proprietorship and Single Member LLC: April 15th
Multi-Member LLC and Partnership: March 15th
LLC with S-Corp Election and S-Corporation: March 15th
C-Corporation: April 15th

File for an Extension if Necessary: If you need more time to prepare your taxes, you can file for an extension. The deadline to file for an extension is typically March 15 or April 15, depending on your business structure. Keep in mind that while an extension grants you more time to file, it doesn't extend the deadline for paying any taxes owed.

Stay on Top of Tax Payments: To avoid penalties, it's essential to stay on top of your tax payments throughout the year. This includes making quarterly estimated tax payments, which can be done online, through a mobile app, or by mail. By staying proactive with your tax payments, you can avoid unnecessary fines and make sure there aren’t any surprises come tax time.

Tax season is never a time that business owners look forward to, but hopefully these tips can you help be better prepared and make this time of the year just a little bit less stressful. If you have questions on which tax forms you need to file, what documents you need to look for, or help getting your financials ready—we would love to help!