Businesses come in all shapes and sizes and generally require experienced professionals to prepare their income tax returns. We are familiar with the preparation of all types of business returns including:
- Schedule C of Form 1040 (Sole Proprietor)
- Form 1065 (Partnerships)
- Form 1120S (S Corporations)
- Form 1120 (C Corporations)
- Limited Liability Companies (filing as one of the above)
First Year Business Tax Return
If this is company's first year in business, there are a number of important decisions the new business owner will need to make in preparing the tax return. One decision is whether to file the return on the cash or accrual basis. As a cash basis taxpayer, income is recognized when collected and expenses, when paid. As an accrual basis taxpayer, income is recognized when earned and expenses, when incurred. The decision of accounting basis is important as it will affect the business tax return throughout the life of the business. In addition, certain businesses because of revenue size or inventories must prepare their returns based upon the accrual method.
Other decisions often affecting first year business returns include depreciation method, home office deduction, auto expenses, non-employee compensation, and self-employment tax. These decisions may require substantial research or the assistance of a professional. Also, this list comprises only a few of the many decisions a new business owner should consider when preparing for the initial business tax return.
For assistance completing your first business return or a complimentary price quote on your return preparation, please contact us today!
