QUICK ANSWER
Start with your business’s tax classification, reconcile your books, and gather the documents that support income and expenses. Your entity and any tax elections determine the federal return. Filing a return and paying tax are separate responsibilities.
Which business tax return do you need?
A business name or an LLC registration alone does not identify the correct federal return. Confirm the number of owners, federal tax classification, and any accepted elections before preparation begins.
- An individual sole proprietor generally reports business activity on Schedule C with Form 1040.
- A partnership generally files Form 1065 and provides partners with Schedules K-1.
- An S corporation generally files Form 1120-S; a C corporation generally files Form 1120.
Special activities and circumstances can require different forms. Check the IRS business-structure guidance and the instructions for your return.
What should you give your tax preparer?
- Last year’s return and notices affecting the current year.
- A reconciled profit-and-loss statement and balance sheet.
- Bank, credit-card, loan and payment-processor statements.
- Payroll reports, contractor records, and information returns received.
- Receipts and business-purpose notes for expenses.
- Asset purchases, disposals, and ownership or election changes.
Identify missing information early. A payment processor’s gross report, for example, may need to be reconciled with refunds and fees rather than added to sales already in your books.
How can you avoid preventable filing mistakes?
Review unusual balances, separate owner transfers from revenue, and document the business portion of mixed expenses. Match the reporting period to the return being prepared. Ask your preparer to explain significant adjustments before you approve the filing.
Keep a copy of the completed return, filing acceptance, supporting schedules, and payment confirmations together. A submitted return is not the same as an accepted electronic filing.
What happens after you file?
Set up a calendar for the obligations that apply to your business, including estimated payments and payroll or sales-tax filings. Discuss material changes in profit or ownership during the year so planning is based on current records.
If you need more time, verify the applicable extension procedure and payment rules. Do not assume an extension to file also extends the time to pay.
COMMON QUESTIONS
Frequently asked questions
Does every LLC file the same tax return?
No. An LLC’s federal tax treatment depends on its ownership and tax elections. Confirm its classification before choosing forms.
Can I file if my bookkeeping is incomplete?
Resolve material gaps before filing. Reconcile accounts, identify missing documents, and discuss an extension when appropriate rather than inventing figures.
Does filing my return cover payroll and sales tax?
No. These can involve separate returns, payment schedules, and state obligations. Build a calendar for each applicable tax.
Sources & further reading
Official references used for this guide. Check the guidance for the tax year and circumstances that apply to you.
About this guidance
Published by Z Tax Accountants, providing bookkeeping, tax preparation, payroll, and business formation support. This article is general educational information; the treatment of a specific issue depends on your facts and the applicable tax year.
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