Business Tax Return Preparation in Fuquay-Varina and Wake County

Your business structure decides the return.

The name on the sign does not settle the filing question. An LLC, for example, is a structure allowed by state law, and its federal tax treatment depends on how many members it has and whether it has elected different treatment. The IRS overview of business structures lays out the main forms.

1. Sole proprietors and single-member LLCs

   Business income and expenses are generally reported on Schedule C with the owner's individual return. A single-member LLC is disregarded for income tax purposes unless it elects to be treated as a corporation. See sole proprietor and Schedule C returns.

2. Partnerships and multi-member LLCs

   A partnership files Form 1065, an annual information return, but does not pay income tax itself. Each partner receives a Schedule K-1 and reports a share of the income or loss on a personal return. See partnership and LLC tax returns.

3. S corporations

   An S corporation files Form 1120-S and passes income, losses, deductions, and credits through to its shareholders, who report them on their personal returns. See S corporation tax returns.

4. C corporations

   A C corporation files Form 1120 and is taxed as a separate entity. Profits are taxed when earned and taxed again to shareholders when distributed as dividends. See C corporation tax returns.

Business deadlines usually come before the personal one.

Generally, a partnership files Form 1065 and an S corporation files Form 1120-S by the 15th day of the third month after its tax year ends. A C corporation generally files Form 1120 by the 15th day of the fourth month, with an exception for fiscal years ending June 30. When a due date falls on a weekend or legal holiday, the date moves, so check the current form instructions each year rather than relying on last year's calendar.

If a business return will not be ready, Form 7004 requests an automatic six-month extension of time to file certain business returns. It generally must be filed by the regular due date, so raise the timing early.

The business return often sets the pace for the owner's return.

Partners and S corporation shareholders report their share of the business results on their own returns, using the Schedule K-1 the business provides. When the business return is late or incomplete, the owner's individual tax return usually waits with it.

If you want both returns prepared, say so in the first conversation. They are separate returns, and the engagement should name each federal and state return included.

Bring the records the business return depends on.

The final document request depends on the entity and the year. These are common starting points.

• The prior year's business return and any IRS or state notices received since.
• Year-end financial statements or bookkeeping reports, such as a profit and loss statement and balance sheet.
• Changes in ownership: new partners or shareholders, buyouts, or changes in ownership percentages.
• Payroll reports and owner compensation records, if the business runs payroll.
• Purchases and sales of equipment, vehicles, or other business assets during the year.

Bookkeeping and payroll are separate services and are not included in business return preparation. If the books need cleanup before a return can be prepared, say so before a timetable is agreed.

When a return raises a planning question.

A finished business return can show more profit than expected, a heavier tax bill for the owners, or a structure that no longer fits. Those are questions for business consulting and tax planning, where entity choice, owner pay, and estimated payments can be reviewed before the next year is over.