Which forms do I fill out?

Question

I started a business in 2005. I pay contractors to do the work for me. At this time, I do not collect any earnings from my business. I reinvest the money back into the business to grow it. Which forms should I fill out to report the company's earnings and expenses. I already filed the 1099 and 1096 for my contractors.

I stated the first question wrong. I started a business in Sept. of 2006. I am the sole proprietor. The business has its own tax number. I do not draw earnings from this. I want to file this seperately from my personal taxes. I already filed my 1099 & 1096 for my independent contractors. Which forms should I fill out to report my earnings and expenses?

Answer 1

What forms depends on how the business is set up.

Sole Proprietorship
LLC (Single Member)
LLC (Multiple Members)
Partnership
S-Corporation
C-Corporation

Pick one....
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As a sole proprietorship, the income and expenses go a Schedule C. The Schedule C (along with Schedule SE if applicable) go along with your personal 1040.

Sole proprietorships are not considered separate entities. They are considered an extension of you. If you have a sole proprietorship, there is no way to do your business return separate from your personal return.

Answer 2

Per Wayne Z, the type of business entity will determine the form. Since you only mention "I", you most likely are a sole proprietor and would file a Schedule C with your personal taxes (1040). If you have any other type of entity, I would recommend meeting with a CPA.

You started the company in 2005? Did you not report your income/loss last year? You might need to file an amended return for 2005 (1040X). Again, it would be wise to sit down with a professional.

Answer 3

do I need to file a different extension form other than 7004 for the state , we are a s-corporation and need a extension on our taxes.???