Steps for Filing Small Business Taxes

January 19, 2025
Published by Gonzales Group CPA

Filing taxes for your small business can seem overwhelming, but with the right information, the process can be manageable. To eliminate any of the stress and worry, though, you can always turn to a CPA in San Antonio TX like the Gonzales Group. Still, it’s good to understand what is required to properly file small business taxes.

Gather Your Financial Documents
Accurate financial records are essential for filing taxes correctly. Start by gathering all necessary documents, including:

• Income records (sales, invoices, bank statements)
• Expense receipts (supplies, rent, utilities, travel)
• Payroll information (wages, benefits, taxes withheld)
• Previous year’s tax returns

Ensure your records are organized and comprehensive, as they will help you calculate your profits, identify deductions, and verify your tax liabilities.

Calculate Your Income and Deductions
Calculate your business’s total income and allowable deductions. Your income includes everything your business earned, including sales, services, and investments. For deductions, look for expenses directly related to running your business, such as:

• Office supplies
• Business-related travel and meals
• Marketing and advertising costs
• Employee wages and benefits

Deductions reduce your taxable income, which can lower your tax bill, so it’s crucial to take advantage of every eligible one, but be sure you fully understand the requirements for each deduction.

Choose the Right Tax Forms
Depending on your business structure, you’ll need to file different tax forms. Common forms include:

• Schedule C for sole proprietors
• Form 1065 for partnerships
• Form 1120 for C-Corporations
• Form 1120S for S-Corporations

Be sure to use the correct forms for your business entity to avoid delays or penalties. You can find the necessary forms on the IRS website.

Know Your Tax Deadlines
Sometimes the tax deadline may fall on a weekend or holiday. In that case, the deadline moves to the next business day. However, the actual deadlines can vary depending on your type of business, such as sole proprietor, partnership, LLC, etc., so make sure you know your exact deadlines. These can also be found on the IRS website.

File Your Taxes
Once you’ve gathered all your information and completed your forms, it’s time to file. Depending on your business type, taxes may need to be filed annually, quarterly, or both. Ensure that you meet all filing deadlines to avoid late fees or penalties. If you do need an extension, you need to file Form 7004, but that still needs to be sent in before the deadline. For businesses that make quarterly payments, mark your calendar for those key dates so you don’t incur penalties.

Staying organized and informed is the key to a successful tax season. While it’s possible to file taxes on your own, working with a CPA in San Antonio TX like the Gonzales Group can help you avoid any penalties, as well as help you find any possible deductions and other money-saving options. To learn more, reach out today and let us help you make taxes less stressful, allowing you to focus on growing your small business.

Categorised in: Business Tips, Common Mistakes Small Businesses Make, How to Pay Yourself as a Small Business Owner, Steps for Filing Small Business Taxes, Tax Info, Tax Report

This post was written by Gonzales Group CPA