Frequently Asked Questions

1. What types of business entities need to file tax returns?
All business types must file returns based on their structure:

• Sole Proprietorship – Form 1040 Schedule C
• Partnership – Form 1065
• S Corporation – Form 1120S
• C Corporation – Form 1120
• LLC – Based on tax election (sole prop, partnership, or corporation)
   

2. When are business tax returns due?

• Sole Proprietors & Single-Member LLCs: April 15
• Partnerships & Multi-Member LLCs: March 15
• S Corporations: March 15
• C Corporations: April 15 or the 15th day of the 4th month after fiscal year-end
  Extensions available.
   

3. What documents do I need to prepare my business tax return?

• Profit & Loss Statement
• Balance Sheet
• Bank Statements
• Payroll Reports
• Asset purchase/sale records
• Prior tax returns
• 1099s, W-2s, and other financial forms
   

4. What is the difference between an S Corp and a C Corp?

• S Corp: Pass-through entity—profits taxed on personal return
• C Corp: Pays corporate tax—may face double taxation if dividends are distributed
   

5. Do I need to file a state business tax return?
Yes. Most states require a separate return. Rules vary by state and business type.

6. What are estimated tax payments, and who must pay them?
Businesses expecting to owe $500–$1,000+ in taxes typically must make quarterly estimated payments.

7. My business had no income—do I still need to file?
Yes. Entities must usually file to stay compliant, even if there’s no income.

8. Can business expenses reduce my taxable income?
Yes. Deductions may include rent, payroll, advertising, utilities, insurance, travel, etc.

9. What is depreciation and how does it affect taxes?
Depreciation spreads the cost of qualifying assets over time, lowering annual taxable income.

10. Should I hire a tax professional?
Yes. Professionals help:

• Avoid costly mistakes
• Maximize deductions
• Stay compliant
• Strategize for future savings