The dreaded tax season is back, but it doesn’t have to be painful. Here’s our Successful Tax Day Checklist for an LLC! This will help your business file successfully without being overwhelmed with too much information.
Confused if you’re supplying the right items or missing critical info? That’s what our Master Checklist is for! We know how stressful it can be and nobody wants to make a mistake on their taxes.
Get your Income and Expenses in Order
Most important? Make sure you have all of your business income and expenses recorded properly! Many businesses use bookkeeping software to help them navigate these areas, but if not, even a simple Excel spreadsheet would help.
You will also want to keep those Expense receipts handy, since the IRS requires sufficient documentation for all expenses related to your business. Don’t worry, those don’t need to be sent in with your tax forms, but you do want to make sure you have them available to support your business for a minimum of 6 years from the date you filed your return.
Complete the Correct Tax Forms
Next, make sure to file the correct tax form, based on your business structure. If you are a sole proprietor or an LLC, all of your Income and Expenses will be entered in the Schedule C, which is attached to your 1040 Form when filing your personal income taxes. If you are a partnership, you’ll report your business income and expenses on Form 1065. S Corporations report business activity on Form 120-S.
Provide Correct Information
Make sure to correctly provide your legal name, address, and birthday along with your social security number or Employer Identification Number (EIN). You will also need to provide the legal name of your business. Double and triple check this information, as any typos can cause delays!
Know Your Deductions
Don’t forget to take advantage of the home office deduction if you run a small business. You can deduct home office expenses different ways, which your tax advisor can help guide you through.
Also know what you can deduct for your business vehicle. If you drive your own car, one of the expenses you’ll be keeping track of from our Master Checklist is how many miles you have driven for work in your personal vehicle. You’re allowed to deduct a percentage of your vehicle use for costs such as fuel and oil, loan interest or lease payments. You can also deduct parking fees and tolls, repairs and maintenance, along with auto insurance, based on how much you drive your vehicle for business-related use.
Charitable donations you make as a business should also be kept handy. These can be used as a tax deduction, as long as you can back it up with a receipt showing the date, value and charitable organization that you gave to.
Medical Expenses
Finally, don’t forget to keep track of medical expenses during the year. Self-employed people who pay for their own health insurance are allowed to deduct the premiums they pay for medical, dental, vision and long-term care insurance premiums. Not only for themselves, but for their dependents, as well. You also can deduct unreimbursed medical expenses such as surgeries, prescriptions, glasses, or braces. There are limitations, but don’t miss these big deductions!
Here’s our Successful Tax Day Checklist for an LLC! Download our handy checklist today and make sure you have all your items recorded properly for tax season. While these are just a few tips to get you headed in the right direction, you can always contact us for a free consultation about how to better manage the bookkeeping for your business!