Small Business Tax Preparation
We Provide Professional and Accurate Tax Preparation Services for Small Businesses
Starting a new business or filing your annual business tax return
can be a complicated and time-consuming process. You have your business to run and you have little time to prepare the documents or for added stress. Contact the professionals at Humphrey CPA, LLC
to handle all steps in starting your business and filing the correct documents. We provide comprehensive tax preparation services for small businesses including s corporations, start-ups, rental properties, retail, restaurants, truck drivers, airline personnel, and self-employed.
If you are starting a new business, we can advise and help prepare the correct documents and the correct income tax returns to file based on your form of business. For established businesses, we can prepare and file your tax returns annually. Our clients rely on us for our experience and reliability to ensure your annual tax returns are filed accurately and on time, and if needed, we can help you apply for an extension.
Our Small Business Tax Preparation Services Include:
- Small businesses
- Self-employed
- S Corporations
- Start-up businesses
- Rental properties
- Franchise tax for small businesses
- Virtual tax preparation
- Electronic tax filing
Documents needed for business return preparation
- Statement of Income and Expenses
- Balance Sheet (Statement of Assets and Liabilities)
We Will Help You Start Your Small Business and Accurately Complete Tax Documents
The information below provides the basic steps you should follow to start a business. This list should not be construed as all-inclusive. Other steps may be appropriate for your specific type of business.
Refer also to the Small Business Administration's 10 Steps to start your business.
Apply for an Employer Identification Number (EIN) if applicable
- Select a business structure
- Choose a tax year
- If you have employees have them fill out Form I-9 (PDF) and Form W-4
- Pay your business taxes
The Form of Business
The form of business you operate determines what taxes you must pay and how you pay them. The following are the five general types of business taxes.
- Income Tax
- Estimated Taxes
- Self-Employment Tax
- Employment Taxes
- Excise Tax
- Income Tax
Small Business Annual Income Tax Return
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.
The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay. If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. If you are not required to make estimated tax payments, you may pay any tax due when you file your return.
Estimated tax Form
Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year.
Self-Employment Tax
Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.
Generally, you must pay SE tax and file Schedule SE (Form 1040) if either of the following applies.
- If your net earnings from self-employment were $400 or more.
- If you work for a church or a qualified church-controlled organization (other than as a minister or member of a religious order) that elected an exemption from social security and Medicare taxes, you are subject to SE tax if you receive $108.28 or more in wages from the church or organization.
Note: There are special rules and exceptions for aliens, fishing crew members, notary public, state or local government employees, foreign government or international organization employees, etc.
Employment Taxes
When you have employees, you as the employer have certain employment tax responsibilities that you must pay and forms you must file. Employment taxes include the following:
- Social security and Medicare taxes
- Federal income tax withholding
- Federal unemployment (FUTA) tax
- For additional information, refer to Employment Taxes for Small Businesses.
Excise Tax
This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following.
- Manufacture or sell certain products.
- Operate certain kinds of businesses.
- Use various kinds of equipment, facilities, or products.
- Receive payment for certain services.
- Form 720 - The federal excise taxes reported on Form 720, consist of several broad categories of taxes, including the following.
Excise tax has several general excise tax programs. One of the major components of the excise program is motor fuel.
Environmental taxes
- Communications and air transportation taxes.
- Fuel taxes.
- Tax on the first retail sale of heavy trucks, trailers, and tractors.
- Manufacturer’s taxes on the sale or use of a variety of different articles
- Form 2290 - There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Report the tax on Form 2290.
Form 730
If you are in the business of accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering. Use Form 730, to figure the tax on the wagers you receive.
Form 11-C
Use Form 11-C, Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering.
To schedule your initial consultation, call us today at 815-334-7472!
