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Business Tax Preparation

Expert, deadline-driven prep for sole proprietors, LLCs, partnerships, S-corps, and C-corps in all 50 states. We keep you compliant, reduce surprises, and help you make confident decisions.

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Business returns are not part of the $20/month membership plan.

Documents

What We Need to File Accurately

For all business types

  • Legal name, EIN, address, and formation state
  • Prior-year federal & state returns (entity + owner, if pass-through)
  • Year-end P&L and Balance Sheet (plus trial balance if available)
  • Bank, credit-card & loan statements (year-end balances & interest)
  • Fixed-asset list & depreciation schedule; new asset purchases & dispositions
  • 1099-NEC/1099-MISC/1099-K received and 1099s issued to vendors
  • Sales tax filings (if applicable) and payroll reports (W-2, W-3, 941/940)
  • Inventory totals & COGS detail (if applicable)
  • Owner distributions, contributions, and any loans to/from owners
  • Estimated tax payments made during the year

By entity (extras we’ll ask for)

  • Sole Proprietor / SMLLC: 1099-K/NEC, mileage log, home-office info, health-insurance & retirement contributions, QBID details.
  • Partnership / MMLLC: Operating Agreement, ownership %, partner SSN/EIN, guaranteed payments, capital accounts/basis, partner loans, K-1 recipients.
  • S-Corporation: Articles/Bylaws, IRS Form 2553 acceptance, reasonable compensation payroll docs, shareholder health insurance, distributions & basis.
  • C-Corporation: Articles & minutes, officer list, shareholder ledger, dividends paid, corporate estimates, 1125-A (inventory) if applicable.

Not sure what applies? Start the portal upload—our intake will tailor the checklist automatically.

Entity basics

How Each Business Type Is Taxed

Sole Proprietorship / SMLLC

Simple to run—reported on your 1040

  • Single owner, not incorporated. Often no state filing; may need a DBA and local business license.
  • Files on Schedule C (or F/E). No separate entity return.
  • All net profit is taxed at individual rates and subject to self-employment tax (Schedule SE).
  • Can qualify as a Qualified Joint Venture (married couple): two Schedule Cs.
  • Pros: quickest to start; losses can offset other income; QBID may apply.
  • Cons: personal liability; every dollar of profit faces SE tax; fewer fringe-benefit options.
Partnership / MMLLC

Pass-through to partners via K-1

  • More than one owner, not incorporated. Often no SOS filing for the entity itself, but DBAs/licenses may be required.
  • Files a separate return: Form 1065. Profits/losses “pass through” to partners on K-1.
  • Good idea to maintain a written partnership/operating agreement.
  • General partners may be personally liable; consider insurance and structure.
  • Pros: flexible profit allocations; pass-through taxation; losses can offset other income (subject to basis/at-risk/passive limits).
  • Cons: partner SE tax on distributive share; income taxable whether or not distributed; potential for partner disputes.
Limited Liability Company (LLC)

Legal shield with tax flexibility

  • SMLLC default: taxed like a sole proprietorship (“disregarded entity”)—owner files Schedule C/F/E.
  • MMLLC default: taxed like a partnership.
  • LLCs can elect C-corp status via Form 8832 or S-corp status via Form 2553 (if eligible).
  • Treated separately for employment and some excise taxes.
  • Pros: liability protection; change tax classification as the business matures.
  • Cons: can be costlier than a sole prop; benefits vary based on chosen tax status.
S-Corporation

Pass-through with payroll for owners

  • Files Form 1120-S; usually no entity-level income tax.
  • Profits/losses pass to shareholders via K-1; shareholders pay tax on profits whether or not distributed.
  • Owner-employees must take reasonable compensation via payroll.
  • Dividends/distributions generally not subject to SE tax (after reasonable wages).
  • Pros: potential SE-tax savings; pass-through losses; may qualify for QBID.
  • Cons: shareholder limits; payroll/admin required; some fringe benefits taxable to >2% owners.
C-Corporation

Separate taxpayer at a flat corporate rate

  • A separate taxpaying entity filing Form 1120 at the corporate rate (currently 21%).
  • Dividends paid to shareholders are not deductible to the corporation; shareholders pay tax on dividends.
  • This creates potential double taxation (corporate level, then shareholder level).
  • Pros: liability protection; multiple classes of stock; certain fringe benefits; potential §1202 benefits for QSBS.
  • Cons: more formalities and admin; losses don’t pass to owners; dividends taxable to recipients.
Key dates

Return Due Dates (Calendar-Year)

Sole Proprietor / SMLLC Report on Form 1040 Schedule C — due April 15 (or next business day).
Partnership / MMLLC Form 1065 due March 15 (15th day of the 3rd month after year-end).
S-Corporation Form 1120-S due March 15 (15th day of the 3rd month after year-end).
C-Corporation Form 1120 due April 15 (15th day of the 4th month after year-end). C-corps with a June 30 year-end are due September 15.

Extensions: most business returns use Form 7004. An extension moves the filing date, not the tax due date.

Clarity check

Hobby or Business?

Factors that support “business” treatment

  • You keep books/records and operate professionally.
  • You devote meaningful time and effort with a profit intent.
  • You rely on the activity for income or adjust operations to improve results.
  • Losses arise from circumstances beyond your control or during startup.
  • You (or advisors) have the knowledge to run the activity; you’ve been successful in similar ventures.

Tax treatment at a glance

  • If a hobby: report income (COGS may reduce gross) as other income; no Schedule C/F, no loss deduction, no SE tax.
  • If a business: report all income & expenses on Schedule C/F or the entity return; losses possible (subject to limits); SE tax may apply.
Ready to file?

Upload your documents securely and we’ll take it from there.

Have questions about the best entity or an S-corp election? Book a quick call—we’ll map the cleanest path before tax season hits.

We follow Circular 230 standards, IRS Form 7216 consent rules, and secure document handling best practices.

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