Meeting tax filing requirements is essential to avoid penalties and maintain compliance. TFX offers tax service packages for various types of businesses in the United States: self-employed, corporations (C corps and S corps), partnerships, and Limited Liability Companies (LLCs). TFX tax preparers will work on your non-personal federal return, U.S. state returns, as well as your personal tax return.

Please note that filing requirements differ depending on your business structure.

Types of business entities

Self-employment — A self-employed person carries on a trade or business as a sole proprietor or an independent contractor. A sole proprietor owns an unincorporated business by themselves or is an individual and the sole member of a U.S. LLC unless it elects to be treated as a corporation. In some cases, a couple filing married filing jointly endeavoring in business together may each be treated as operating a sole proprietorship under Qualified Joint Venture rules. Refer to the IRS website Tax Guide for Small Business for more information.
Single-member Limited Liability Company (LLC) — An LLC is an entity formed under state law by filing articles of organization. Generally, and by default, for income tax purposes, a single-member LLC is disregarded as an entity separate from its owner and reports its income and deductions on its owner's federal income tax return, unless the LLC elects to be treated as a corporation. Refer to the IRS website Single Member Limited Liability Companies for more information.
Multiple-member Limited Liability Company (LLC) — A U.S. LLC with at least two members is classified as a partnership for federal income tax purposes unless it elects to be treated as a corporation. Refer to the IRS website LLC Filing as a Corporation or Partnership for more information.
C corporation — A U.S. C corp is a legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity. Unless exempt under Section 501, all U.S. corporations (including corporations in bankruptcy) must file an income tax return whether or not they have taxable income. The taxation of profits from the business at both corporate and personal levels may create a double taxation situation. Refer to the IRS website Corporations for more information.
S corporation — S corps elect to pass income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on corporate income. S corporations are responsible for tax on certain built-in gains and passive income at the entity level. Refer to the IRS website S Corporations for more information.
Partnership — It is the relationship between two or more people to do trade or business. Each person contributes money, property, labor or skill, and shares in the profits and losses of the business. Partnerships file an information return to report their income, gains, losses, deductions, credits, etc. A partnership does not pay tax on its income but "passes through" any profits or losses to its partners. Partners must include partnership items on their tax or information returns. S corp and partnership confer similar tax treatments but S corp has more restrictions, except that S corps can have only one member while partnerships must be at least two. Refer to the IRS website Tax Information For Partnerships for more information.
Note: if you and your spouse jointly own and operate an unincorporated business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. However, you may qualify to report as sole proprietors if you meet the Qualified Joint Venture rules.

Documents required for filing the tax return

Self-employment:

1099, 1099-K, 1099 MISC, and 1099-NEC records for all self-employed work completed. They are issued by the payor.
Records of expenses related to your self-employment and your home office, if you have one.
Records related to personal deductions, including childcare expenses, educational expenses, etc.
Any W-2 or 1099 forms you issued, if you have employees.

Corporations:

Income statement (Profit and Loss Statement).
Balance sheet.
Records of business expenses.
Employee payroll records (if applicable).

Note: you should also report the salary you received from the corporation as income on your 1040 personal tax return.

Partnerships:

Partnership or organizing agreements.
Income statement and balance sheet.
Records of business expenses and income distribution among partners/members.

Forms required for filing

Schedule C (Form 1040) (Single-member LLCs, Sole proprietorship):
- Schedule C is filed with Form 1040. It outlines income or losses from a sole proprietorship business, professional practice, or a single-member LLC if the single-member LLC is not engaged in farming and its owner is an individual.
Schedule E (Form 1040) (Sole proprietorship, S corps, Partnerships, LLCs):
- Schedule E is filed with Form 1040. It outlines income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits (REMICs) filed with Form 1040.
Form 1120 or Form 1120-F (Corporations):
- Form 1120 is filed by C corporations. 1120-F is filed by foreign corporations engaged in a U.S. trade or business or if the foreign corporation had no effectively connected income or the effectively connected income was exempt from U.S. tax under a tax treaty.
Form 1120-S (S corps), Form 1065 (Partnerships, Multiple-member LLCs):
- These forms detail income, deductions, and credits for the respective pass-through entities.
Schedule K-1 (Form 1065) or Schedule K-1 (Form 1120-S) (Partner or member’s share of income):
- Schedule K-1 filed with Form 1065 or 1120-S. It details the distributive share of a partner or member's income, deductions, credits, etc. Schedules K-2 or K-3 may also be required when the entity operates outside the U.S.
Form 5471 (Corporations):
- If the U.S. corporation owns any foreign corporations, it needs to file Form 5471.

Filing deadlines for different business entities

Self-employment:

Filing deadline: Follow the individual tax filing deadline (usually April 15th).

Single-member LLCs:

Filing deadline: Follow the individual tax filing deadline (usually April 15th).

Multiple-member LLCs:

Filing deadline: File as a partnership or corporation based on their election date and follow the respective filing deadlines.

C corporations (C corps):

Tax year end: A C Corp may use either the calendar year or a fiscal tax year.
Filing deadline: The corporate tax return (Form 1120) is generally due by the 15th day of the fourth month following the end of the corporation's tax year (April 15th for calendar year C corps). However, for instance, a corporation with a fiscal tax year ending June 30 must file by the 15th day of the third month after the end of its tax year (September 15 in that case).

S corporations (S corps):

Tax year end: Usually December 31st.
Filing deadline: S Corps generally file Form 1120-S due on the 15th day of the third month following the end of its tax year (March 15th for calendar year S corps).

Note: a corporation that has dissolved must generally file by the 15th day of the fourth month after the date it dissolved.

Partnerships:

Tax year end: A partnership may use either the calendar year or a fiscal tax year.
Filing deadline: Partnerships file Form 1065, due on the 15th day of the third month following the end of its tax year (March 15th for calendar year partnerships).