The Documents Needed To Prepare For A Yonkers Corporate Tax Return
If you have a partnership company or a limited liability company, then you must prepare and submit an annual corporate tax return. The structure of your firms as well as how you choose to others will have a significant role in determining the documents that you’ll need to prepare the tax return sufficiently. Under certain circumstances, even you as the business owner could be required to present personal tax returns together with the corporate tax return.
If you’re a limited liability company (LLC) or you are also an employee of your firm and pay yourself a salary, the income you earn as an employee for your corporation must be included on your 1040. There are corporations that are viewed as “pass-through” entities which mean that loss and profits “pass-through” the firm and to the owner of the corporation. For this reason, the owner or member of the firm is required to list their profits, losses, and income on personal income return.
Form 1120 is for annual corporate income tax return. It also includes Schedule C. Form 1120 requires you to provide some basic info about your corporation, including the Employer Identification Number, a list of all deductions including compensations made to the board of directors or officers. Form 1120 also lists other schedules that may or may not be relevant to your business. For instance, Schedule A covers the cost of goods sold; Schedule K includes information regarding your business, such as the type of business and your accounting.
If your business is a partnership; for instance, an LLP (limited liability partnership), you may have to fill out form 1065 for the associated income. According to the IRS, partnerships do not pay taxes on their income. But, the profits and losses “pass-through” to the partners’ personal tax returns.
Other Forms Related To Corporate Taxes
If your corporation has employees or independent contractors, you’ll also have to submit other forms. For example, you’re required to electronically file Form 944 with the IRS for federal unemployment taxes. Also, if you withheld Medicare and Social Security from your employees, then you must submit both W-2 and W-3 forms to the Social Security Administration.
For every independent contractor that you pay more than $600 for work completed or other services, you’re required to include Form 1099-misc. If your corporation paid more than $10 in broker fees or royalties, you must also issue Form 1099-misc. Note that different forms will have different deadlines. Consult with a certified public accountant or your attorney to know the dates as well as the deadlines for paying your corporate taxes.
We know you want to keep an eye on the big picture and that’s precisely why we will work with you closely to minimize your tax liabilities and maximize your allowable deductions.