Tax season doesn’t have to be scary, as long as you know what needs to be prepared beforehand! As a small business owner, tax season tends to be a stressful time, but our team at Pathways is hoping to change that!
When filing your federal income tax for your small business, you have different forms for different company set ups. If you run a sole proprietorship, your tax form will be different as compared to an LLC.
The first step to the tax process is to gather up all your records that report income and expenses. This is where Quickbooks comes in handy. It’ll have all your data stored and organized for easy recall during tax season!
Choosing the correct form for your business model sounds daunting, but it doesn’t have to be. Sole proprietorships allow owners to use a Schedule C attachment to their personal income tax return. If under an LLC, they can use this attachment but also must use Form 1120.
The only steps left are to fill out your forms appropriately and to get it done before the deadline. Pathways can help with both of these steps as long as you schedule an appointment with one of our tax experts!
The Pathways Team