Are Individual Taxes and Business taxes done on one Return?

Question

We opened a business in March of this year, next tax season, How do you file? Are business taxes seperate? We charge sales tax. thanks in advance

Answer 1

Are you incorporated? If so you business files on its own.
If you are an owner operated sole proprietor, file schedule C with your personal individual 1040.

Answer 2

If the business is a Sole Proprietorship or Single-Member LLC (aka disregarded entity) it is filed on your Schedule C of your form 1040 (you will probably also have a schedule SE for the 15% self-employment tax if you have net business income...you may want to consider a solo 401(k) or SEP IRA to shelter income from taxes, up to the first $15,500 of business income for the 401(k), and 20% of business income up to $45k or $50k deduction depending on age).

If the business is a S-Corporation or Partnership, they file separately on forms 1120S and 1065 respectively, and the income flows through to the owner's tax return via form K-1, which is reported on Schedule E of your tax return. The businesses do not pay separate federal tax, the tax is paid by the owners. There may be separate state or local tax however.

If the business is a C-Corporation, it will file form 1120 and pay federal, state and local taxes tax separately. Tax is not paid on earnings by the owners.

State and local sales tax is collected and remitted on a periodic basis as dictated by your state (it is not a federal tax in the United States). It is not an expense as such, as it is collected and passed through to the State or local governments.

Answer 3

If your business is incorporated, then it files its own return - incorporation makes the business a separate entity. If you're a sole proprietorship, then you'd just file a schedule C, showing your business income and expenses, with your personal 1040. The number from the bottom of the schedule C will transfer to the 1040, and add to any other income you have for calculation of income taxes.

Answer 4

If its a sole proprietorship you just add a couple of forms to your regular tax return, the schedule C and the schedule SE