Small Business Tax Checklist

Small Business Tax Checklist

We all know that taxes aren’t that fun. Especially as a business owner. You want to make sure you don’t leave out a single crucial detail, because a small mistake could result in a delay for your tax return. Here’s our small business tax checklist to make your job easier!

1. File the right tax form

What structure does your business follow? Sole proprietors and single member LLC’s need to report their business income and expenses on Schedule C on Form 1040.

For businesses that are partnerships or multi-member LLC, you’ll need form 1065.

S Corporations need form 1120-S.

2. Keep track of your expense receipts

If you’re wanting to itemize your expenses and deductions(and you should), you’ll need to keep track of all of your expense receipts over the year. Keep them in the same place, or inputting them directly into an app is a great way to keep track of all of them.

3. Prepare all of your documents

Organizing all of your documents from the year(including receipts) will save you money when you go to your small business accountant, since they won’t have to organize your documents.

4. Interest income

Do you have a business checking or savings account that earns interest? You’ll receive a 1099-INT from your bank to account for this on your taxes!

5. Home office deductions

If you use your home regularly for business, you may be eligible for home office deductions. Just make sure you understand how to deduct it on your taxes! You’ll need to know the square footage of the home office, as well as the square footage of your entire home. There are two ways to deduct this! The simplest way is to can claim $5 for every square foot that is solely used as a home office. For example, if your office was 150 square feet, you could have a tax deduction of $750.

6. Keep track of assets sold and bought

Gather up all of your records of assets that were bought and sold over the year. You’ll need to calculate the gain or loss on any sale, as well as a depreciation expense for furniture and equipment, the cost of the asset, the date you started using it for business, the date sold and the proceeds from the sale.

7. Health insurance

If you pay for your own health insurance(as a self employed individual, you probably do), you can deduct the premiums you paid for medical, dental, vision, and long-term care for yourself and dependents.