Tax Man

Tax Man

 

Most new businesses are often confused about the business structure they choose to take on and its relation to taxes. Of course a knowledgeable CPA (like myself) can help you navigate through the various IRS filings, for the few brave do-it-yourself individuals I have just made your life a little easier. I’ve summarized in tabular form the types of forms needed from the IRS and included  a quick link to the IRS in which further data can be found. And oh yes, you are very welcome!

Here are the specific Tax obligations per structure and the respective forms that you need to use.

 

 

FORMS

Sole Proprietorship2

Partnership

3

Corporation

4

S Corporation

5

Income Tax Forms
1040: US Individual Income Tax Return  Yes Yes

  • INP
Yes

  • INS
Sched C (Form 1040): Profit or Loss from Business  Yes
Sched C-EZ (Form 1040): Net Profit from Business  Yes
Schedule E (Form 1040): Supplemental Income and Loss Yes

  • INP
  • INS
1120: U.S. Corporation Income Tax Return  Yes
1120S: U.S. Income Tax Return for an S Corporation  Yes
1120 Sch. K-1 (Form 1120S) Shareholder’s Share of Income, Deductions, Credits, etc.  Yes
Annual Return of Income
1065: U.S. Return of Partnership Income  Yes
Self Employment Tax
Sched SE (Form 1040): Self Employment Tax  Yes Yes

  • INP
Estimated Tax
1040-ES: Estimated Tax for Individuals  Yes Yes Yes

  • INS
1120-W: Estimated Tax for Corporations  Yes  Yes
Social Security and Medicare taxes and Income Tax Withholding
941: Employer’s Quarterly Federal Tax Return  Yes Yes Yes Yes
943: Employer’s Annual Federal Tax Return for Agricultural Employees  Yes  Yes  Yes  Yes
944: Employer’s Annual Federal Tax Return  Yes
Providing information on social security and Medicare taxes and income tax withholding
W-2: Wage and Tax Statement (for the employee)  Yes
W-3: Transmittal of Wage and Tax Statements (for the Social Security Administration)  Yes
Federal unemployment (FUTA) tax
940: Employer’s Annual Federal Unemployment (FUTA) Tax Return  Yes Yes  Yes  Yes
Employment Taxes
8109-B: Federal Tax Deposit Coupon  Yes
Excise Taxes
Form 720: Quarterly Federal Excise Tax Return  Yes Yes Yes Yes

 

INP– to be accomplished by the individual partner in the Partnership

INS – to be accomplished by the individual shareholder in the S Corporation

 

An LLC, since it is relatively new operates differently in terms of Tax requirements. The owners of an LLC are referred to as members. The members can be individuals, corporations or foreign units. An LLC can also be owned by a single member.

 

The tax requirements for an LLC can be filed as either a sole proprietorship, partnership or a corporation. To finalize the classification, the owner/s must file a Form 8832 and choose how they want to be classified. Their choice will dictate the type of tax forms they will use.

 

(Disclaimer: There are other various state forms not mentioned. The articles is meant for informational purposes only.)

 

 

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