If you’re looking for help with small business taxes and tax preparation, you’re not alone. Many business owners find the process of filing their small business tax return mysterious at best. You may wonder about forms, small business tax deadlines, small business tax deductions, and whether to file an extension.
While you don’t need to know about business tax forms and tax laws when filing with TurboTax Live Business, we spoke with TurboTax Business tax expert, Sherri Laudenslager, who shared essential small business tax filing tips for small business owners.
Small Business Tax Filing: S-Corps, Multi-Member LLCs, and Partnerships
For S-Corporations, Multi-Member LLCs, and Partnerships, your small business tax return is due on March 17, 2025. These types of businesses are considered “pass-through” entities, meaning the income passes through to shareholders or partners via Schedule K-1 (Form 1065), which is then reported on their personal tax returns.
The main advantage of pass-through entities? No federal tax is due to the IRS at the time of filing the business tax return, avoiding double taxation. This is because profits pass through to the owners personal tax returns and are taxed at their individual tax rate.
If you are a Single Member LLC, your tax deadline is April 15, 2025 and you will file your federal taxes on a Schedule C with your personal taxes.
Not sure about your business structure? Check out our guide on Choosing Your Business Structure: 5 Types of Businesses to Consider.
Small Business Tax Preparations: Essential Practices
Keep Personal and Business Finances Separate
Separating business and personal finances and making sure you have clean books is crucial to an accurate tax return.
Essential Records for Small Business Tax Returns:
- Last year’s return
- Clean financial statements
- Expense receipts
- Bank and credit card statements
- Depreciation schedules
- Details of assets purchased
- Shareholder contributions and distributions
- Payroll records
Regular book reconciliation ensures accuracy in your tax reporting and helps with financial decision-making.
Small business owners should gather all financial records related to their business, including expense receipts, bank statements, and payroll records.
Leverage this Business Tax checklist to help you keep track of what you’ll need when filing.
Tax Deductible Items for Small Business
Maximize your small business tax deductions by considering:
Track all eligible business expenses carefully – proper documentation is key to maximizing your deductions.
QuickBooks allows you to easily track your business income, expenses, and even business mileage and then you can import your information to your TurboTax Business tax return allowing for seamless transfer of your information and a done-for-you tax experience.”
Small Business Tax Preparation, Deadlines, and Extensions
If you’re not ready to file your business taxes by the March 17 deadline, we’ll help you file a free extension. With TurboTax Business you can request a free, 6-month federal tax extension with Form 7004. This allows an automatic 6-month extension to file Form 1120-S for S-Corps and Form 1065 for partnerships. Then file with one of our expert’s help—or have them file for you before the tax deadline to avoid any unnecessary penalties.
Payroll Considerations for Small Business Taxes
Understanding payroll requirements is crucial for small business tax compliance. Whether you operate as an S-Corp or Partnership, proper payroll management can help you avoid costly mistakes and take advantage of tax benefits. Here’s what you need to know about compensation structures and requirements for different business types:
For S-Corps:
- Officers must receive reasonable compensation before any shareholder distributions
- Medical insurance requires special consideration
For Partnerships:
- Owners receive guaranteed payments instead of salaries
- Compensation should follow partnership agreement terms
- Check our guide on calculating partnership compensation
Any deviations from these rules should be corrected through payroll reporting amendments.
Estimated Tax Payments for Small Buisness
Individual partners or if you own a Single Member LLC, you may need to pay quarterly estimated taxes if you expect to owe $1,000 or more. The first quarterly estimated tax payment for tax year 2025 is due April 15. QuickBooks and TurboTax Live Business tax experts can help you easily figure out your estimated taxes.
Small Business Expert Tax Help
Looking for help with your small business taxes? With TurboTax Business, you can connect with business tax experts year-round, including evenings and weekends during tax season – no appointment needed. Plus, you’ll get maximum tax savings and audit protection at no extra cost.
