Small Business Tax Tips and Tools

Tax filing time can be, well, a taxing time for small business owners. But it doesn't have to be. We'll help guide you on the key forms you'll need, filing processes, and important resources.  

Frequently Asked Questions

  • How much does a small business have to make to file taxes?

    Self-employed individuals generally must pay self-employment (SE) tax as well as income tax. You must report your business income on Schedule SE if you have more than $400 of taxable business income for the year, even if you are already receiving Social Security or Medicare benefits.

  • How do small businesses report taxes?

    All businesses except partnerships must file an annual income tax return. Partnerships file an information return. The form you use depends on how your business is organized. Many small business owners operate as sole proprietorships, allowing them to report all of their business income and expenses using a Schedule C attachment to their personal income tax return. If you operate as a single-member LLC and are the sole owner, the IRS also allows you to use the Schedule C attachment.

  • Can you file your business and personal taxes separately?

    Unless your business entity is a corporation, you generally must file your business and personal taxes together. Sole proprietors, for example, must report their business income on their personal tax returns. However, if you operate as a limited liability company (LLC) as a corporation, you can file separate taxes using IRS Form 1120.

  • Do small businesses have to pay taxes every year?

    Most businesses must file and pay federal taxes on any income earned or received during the year. However, individuals who are self-employed must typically pay the IRS money toward self-employment tax every month in the form of estimated tax payments. Technically, these estimated payments are referred to as "quarterly estimated payments." Estimated tax is the method used to pay taxes on income that is not subject to withholding. This includes income from self-employment, interest, and dividends. 

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