Guido Mieth / Getty Images In this article, you’ll learn how to prepare business taxes, what forms you can file online, and details regarding business tax e-filing and payments.
Don’t Neglect Your Business Taxes
If you’re a business owner, you have numerous responsibilities. Among your top priorities should be filing your business taxes accurately and on time. If your business owes back taxes, don’t ignore the problem. You can get guidance from a tax professional who can help you create a plan for paying your tax bill.
How to Prepare Your Taxes
The way your business is structured as well as its location play roles in how your business is taxed. Businesses are required to abide by federal, state, and local tax rules. Familiarize yourself with your tax requirements in advance, as you may need to pay taxes at different intervals during the year. The types of business taxes generally include:
Income tax Self-employment tax Estimated tax Employer tax Excise tax
Business obligations, tax requirements, and necessary forms vary depending on the type of business tax. The IRS provides detailed information about the required forms on its website, which also has information about what forms can and can’t be e-filed. Turn to your state and local governments for details regarding your state and local business tax responsibilities, which typically include income and employment taxes.
How to E-File and Pay Your Business Taxes
The IRS allows businesses the option to file federal tax returns online. If you have an income of $73,000 or less, you can file taxes electronically using IRS Free File, no matter if you are drawing a paycheck, are self-employed, or have a small business. If your business income is above $73,000, you can use IRS Free File Fillable Forms. If you choose to utilize IRS Free File Fillable Forms, make sure you feel confident doing taxes, because you’ll receive little guidance using this method, and the system does not check for errors. You can use the IRS Modernized e-File (MeF) system for filing business income tax returns as well as employment tax returns. The IRS provides a list of approved Modernized e-File (MeF) business providers to choose from, depending on your filing needs. Filing your tax paperwork then paying the IRS are two separate steps, so make sure to complete both transactions. You can pay your taxes directly through linking a bank account, or you can choose to pay with a debit or credit card. You can also enroll in the Electronic Federal Tax Payment System, which is a free service from the U.S. Treasury.
E-Filing State Taxes
You’ll also need to make sure you meet state and local tax obligations, which will depend on where you’re located and the way your business is structured. The best way to keep up to date with these regulations is to check with your state and local governments. Many states allow businesses to e-file their taxes and submit payments online as well. You can look up your state tax requirements on the SBA’s website to determine your business’s state tax obligations.
