Business Tax Preparation Services
Khob Tax Services is a professional tax preparer providing highly precise business tax preparation services to corporations that need specialized tax expertise. Our offerings range from large corporates to medium and small business tax assistance.
We guide large corporations and small businesses through easy resolution of complex tax-related decisions. Our personalized treatment of every scenario enables businesses to make sound decisions.
Partnerships and LLCs:
In matters of specialized business tax preparation for partnerships and LLCs, we have an expert team of business tax consultants who analyze every business tax liability for each quarter. Accordingly they strategize to minimize the tax amount and file for returns in compliance with the updated laws.
1. Do I Have to File a Business Tax Return?
The answer is always “YES.” If you have income and fail to file an income tax return, you may incur fines and penalties from the IRS. Even if your business has a loss or your business was inactive, you must file a tax report. A business loss may actually help you because it can reduce your total income on your personal tax return.
2. When is the deadline to file business taxes?
• Partnership returns((IRS Form 1065) and S-corporation returns (IRS Form 1120-S) are due March 15. The extended deadline is September 15
• C-corporation income tax returns (IRS Form 1120) are due April 15. The extended deadline is October 15
3. How Do I Determine My Business Income?
Before you prepare your business tax return, you will need to put together an income statement, often called a “P&L” or profit and loss statement. This statement lists all sources of business income, then shows all the expenses. Income minus expenses equals net income. You must also include barter income on your business tax return.
4. What Business Expenses can I Deduct?
As a business owner, you can deduct all expenses related to the business such as Travel Expenses, Vehicle Expenses, Advertising Cost, Internet and Cellphone, Home office deduction, Insurance, etc. While these are the most common expenses, Khob Tax will assist you with the other potential expenses that are deductible for your business.
5. Do I Have to Pay Self-employment Tax?
Every taxpayer pays Social Security and Medicare tax on income. Employees pay this tax (called FICA tax) through withholding, and their employers pay the other half of the required amount of tax. Self-employed individuals pay the entire amount of this tax (called SECA Tax) by paying self-employment tax on the net taxable income of their business. To find out if you must pay self-employment tax, you must know whether you are an employee or a business owner. If you own and run a small business, you are a business owner and you pay self-employment tax. Partners and LLC members are included in this category. If you are a shareholder or officer in a corporation, you are also an employee, and you pay FICA tax on your salary. You don’t pay self-employment tax.
6. How Do My Business Taxes Affect My Personal Tax Return?
Your portion of business tax is included in your personal income tax return, depending on the type of business you own. When filing a self employed business tax return, owners file a Schedule C for each business they own, and the net income from this Schedule C goes on Line 12 of the first page of your personal tax return (Form 1040 or 1040-SR). So, the income from your business is directly taxable to you, at the same rate as your other income. Owners of partnerships (including members of multiple-member LLCs filing as partnerships) receive a Schedule K-1showing their share of the partnership’s tax liability. Schedule K-1 income is included on each partner’s income tax return and is taxed along with other sources of income. In the same way, owners of corporations and S corporations also receive a Schedule K-1 showing their share of earnings from the corporation, and the K-1 income is included on their personal tax returns.