Our Tax Accountants Can Help Small Businesses of All Types
There are several different types of businesses. When it comes to filing business taxes, most businesses file with a Schedule C on a personal tax return. This involves a form 1040. This is because most small businesses are sole proprietorships.
A sole proprietorship is the default business type that small businesses are if they are not registered with their state as a different kind of business, and the proprietor does not have any business partners. A sole proprietor pays taxes on the owner’s personal tax return, using a schedule C.
A partnership is a business with at least two partners. Partnerships are registered with the state. Partnerships need to file an information return on Form 1065. Each partner gets a Schedule K-1 for their personal return.
An LLC with a single member files as a sole proprietorship. A multiple-member LLC files as a partnership.