End-of-Year Business Tax Prep Checklist

☐ Know your deadlines

Depending on your business structure, your tax due dates will vary.

• If your business operates or is taxed as a sole proprietorship, single-member LLC, or C-Corporation, the tax deadline for filing your return typically falls on the standard April deadline each year.
• If your business operates or is taxed as an S-Corporation or Partnership, your filing deadline is usually in March, about one month before the individual filing deadline.

Some businesses may qualify for additional time to file if located in areas impacted by federally declared disasters or severe weather. Check IRS.gov for the most current information on extensions and relief programs.

☐ Gather needed documents

Before filling out any tax form to report your business income, gather all your records that show your earnings and expenses. You can start by collecting documentation that includes:

• Tax forms sent or received, such as W-2, 1098, or 1099 forms.
• Income.
• Gross receipts from sales or services.
• Sales records, including returns and allowances.
• Business checking and savings account interest.
• Inventory. 
• All expenses, including insurance, loan interest, office supplies, and professional fees.
• Wages, bonuses, and commissions paid.
• Rent for your business.

It can also be helpful to locate a copy of your completed tax return from the previous year. Reviewing prior filings can help ensure you do not overlook any deductions, credits, or information that may still apply.

☐ Select the correct tax form

Selecting the right form or forms for your business can be confusing. The forms you need vary based on your business structure:

Sole Proprietor

• Form 1040, U.S. Individual Income Tax Return.
• Schedule C (Form 1040), Profit or Loss from Business.

Partnership

• Form 1065, U.S. Return of Partnership Income.

C-Corporation

• Form 1120, U.S. Corporation Income Tax Return.

S-Corporation

• Form 1120-S, U.S. S-Corporation Income Tax Return.

LLC

Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a C-Corporation, S-Corporation, Partnership, or as part of the LLC owner’s tax return (sole proprietorship).

• If the LLC is classified as a Partnership, use Form 1065, U.S. Return of Partnership Income.
• If the LLC is classified as part of the owner’s personal return, use Form 1040, U.S. Individual Income Tax Return and Schedule C (Form 1040), Profit or Loss from Business.
• If the LLC is classified as an S-Corporation, use Form 1120-S, U.S. S-Corporation Income Tax Return.
• If the LLC is classified as a C-Corporation, use Form 1120, U.S. Corporation Income Tax Return.

For more details, visit the IRS Forms & Instructions page.

☐ Filing an extension

If you are not sure you will be able to file your business taxes before the deadline, you may consider filing an extension. An extension typically extends the filing due date by six months.

Most businesses use Form 7004 to apply for an extension. However, if your business activities are reported on your personal tax return, use Form 4868.

Keep in mind that an extension does not extend the time to pay any taxes owed. Payments are still due by your original deadline to avoid late payment penalties or interest.

Tax preparation can be confusing for anyone, especially small business owners. Taking time to organize your documents, confirm deadlines, and verify which forms apply can help make tax season smoother and less stressful each year.

Please note: This page offers general legal information, not but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.