15 Common Tax Forms for Small Businesses

Preparing your small business taxes typically involves gathering numerous documents and materials, including applicable IRS forms. The forms you'll use will depend on your business structure, whether you have employees, and how your income is reported. Understanding which forms apply to your business is critical and will help you avoid IRS penalties and filing errors, ensuring smoother operations.

Use this guide to help you zero in on the forms you'll be using this tax season. If you're still unsure which forms apply to your operations, don't worry, help is available. A dedicated accountant can help ensure every form is selected and filed correctly and on time.

Key Takeaways

• Entity type helps determine which tax forms small businesses must file.

• Business owners operating as sole proprietors usually file Schedule C with Form 1040, their personal income tax return.

• Partnerships file Form 1065 and Schedule K-1 for informational purposes.

• S corporations file Form 1120-S, which is an informational tax return.

• Employers must file payroll forms such as Form 941, W-2, and W-3.

• Businesses that owe quarterly taxes must submit Form 1040-ES multiple times per year.

Most Common Small Business Tax Forms

The exact business tax form you’ll need depends on your business entity type. Below is a list of the most common business tax forms.

How to File a Small Business Tax Return

Filing a small business tax return is a multi-step process, consisting of:

1. Collecting the necessary records. Tracking income and expenses throughout the year is critical and ensures a smoother tax season.

2. Identify appropriate forms. Determine your entity-specific tax obligations as soon as possible.

3. Prepare each form and thoroughly review it before submitting.

4. Monitor deadlines and file electronically when given the option for the most immediate results.

Business Tax Forms to Know

The forms you’ll need will depend on your business entity. Below is a list of business tax forms.

Estimated Tax Forms

Businesses and self-employed individuals who expect to owe $1,000 or more in taxes for the year must submit quarterly estimated tax payments. This is because the US tax system is "pay-as-you-go," meaning you pay as income is earned rather than in a lump sum in April.

Sole proprietors and pass-through entity owners use Form 1040-ES to calculate and submit their quarterly estimated tax payments by the following deadlines:

• April 15th

• June 15th

• September 15th

• January 15th

This guide will help you learn how to calculate estimated taxes.

Payroll Tax Forms

There are multiple forms used for payroll taxes. It's essential to handle these materials carefully, as the IRS imposes some of its most severe penalties for payroll-related errors.

• Form W-2, Wage and Tax Statement, reports wages paid to employees. It details withheld income, Medicare tax, and Social Security. You’ll also use this form if you paid $600 or more in wages, even if you didn’t withhold any income, Medicare tax, or Social Security.

• Form W-3, Transmittal of Wage and Tax Statements, is a summary of your W-2 submissions for the year. Used to transmit Copy A forms of W-2. Employers with at least one household employee must also file this form.

• Form W-4, Employee's Withholding Certificate, details an employee's tax withholdings. Employers use this to calculate tax withholdings from employee wages each pay period.

• Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, is the form you’ll use to report your annual FUTA tax, which is paid exclusively by employers.

• Form 941, Employer’s Quarterly Federal Tax Return, is a form employers use to report income taxes, Medicare tax, and Social Security tax each quarter.

• Form 944, Employer’s Annual Federal Tax Return, is a form employers use to pay the above taxes annually instead of quarterly. This is typically for very small employers who don't pay much in annual wages.

Use this comprehensive payroll tax guide to learn more about payroll taxes as a business owner.

Income Tax Forms by Business Structure

Your business entity type will determine which forms you'll need to complete your return.

Sole proprietors

Sole proprietors, a default entity type for individuals who don't go through the formal election process, must use the following forms.

• Schedule C, Profit or Loss from Business, is the form a sole proprietor uses to report the costs of goods sold, expenses, income, and other expenses.

• Form 1040, U. S. Individual Income Tax Return, is the form you’ll use to figure out your itemized deduction.

  • Your federal income tax may decrease if you take the larger of your itemized deductions or your standard deduction.

Partnerships

Partnerships are pass-through entities, meaning they don't pay taxes at the entity level. Instead, profits and losses flow through to each owner, called a partner. Partnerships will use the following forms for information, not for payment.

• Form 1065, U. S. Return of Partnership Income, is the form you’ll use to report a partnership’s credits, deductions, income, gains, or losses.

• Schedule K-1, Partner’s Share of Income, Deductions, Credits, is the form a partner will use to report their share of the partnership’s credits, deductions, or income.

S corporations

Like partnerships, S corporations aren't typically taxed at the entity level. Tax forms for S corporations should be submitted for informational purposes.

• Form 1120-S, U. S. Income Tax Return for an S corporation, is the form an S corp uses to report its credits, deductions, income, gains, or losses.

• Schedule K-1, Partner’s Share of Income, Deductions, Credits, is the form a partner will use to report their share of the partnership’s credits, deductions, or income.

C corporations

C corporations, which are subject to double taxation, submit the following form by the appropriate deadline.

• Form 1120, U. S. Corporation Income Tax Return, is the form a corporation uses to report its credits, deductions, income, gains, or losses.

  • Corporations can also use this form to figure out their income tax liability.

Depreciation and Deductions

Depreciation allows businesses to recover the costs of tangible assets, such as vehicles and machinery, which reduces taxable income. Business owners use the following form:

• Form 4562, Depreciation and Amortization, is the form you’ll use to:

  • Claim your deduction for depreciation and amortization.

  • Make the election under section 179 to expense certain property.

  • Provide information on the business or investment use of automobiles and other listed property.

  • Within Form 4562, you’ll provide information about your property.

  • You’ll attach this form to your tax return.

Extension

Businesses that need to file an extension can use one of the following forms.

• Form 1138, Extension of Time for Payment by a Corporation Expecting a Net Operating Loss Carryback, is the form a corporation will use.

  • Corporations will use this form if they expect a net operating loss in the current tax year.

  • This form allows the corporation to extend its payment time until the immediately preceding tax year.

• Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, is the form you’ll use to request:

  • An automatic, six-month extension to file certain:

    • Business income tax

    • Information

    • Other returns

Check out this comprehensive guide on how to file business tax extensions.

Audit

Address mistakes before the IRS catches them by filing an amended return.

• Form 1040-X, Amended U. S. Individual Income Tax Return, is the form that you’ll use to:

  • Change amounts previously adjusted by the IRS.

  • Correct Forms 1040, 1040-A, 1040-EZ, 1040-NR, or Form 1040-NR EZ.

  • Claim a carryback due to a loss or unused credit.

  • Make certain elections after the prescribed deadline.

  • You can file Form 1040-X electronically or by paper filing.

Health Coverage Reporting Forms

The following forms primarily apply to larger employers subject to the Affordable Care Act reporting requirements. Small business owners can skip this section.

• Form 1094-B, Transmittal of Health Coverage Information Returns, is a summary of 1095-B forms filed throughout the year. You must file Form 1094-B with Form 1095-B.

• Form 1095-B, Health Coverage, is the form that you’ll use to report information to the IRS and employees about individuals covered by minimum essential coverage.

• Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, is the form employers will use if required to offer employer health insurance under the Affordable Care Act. Like Form 1094-B, it functions as a summary of Form 1095-C. You must file Form 1094-C with Form 1095-C.

• Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, is the form a company will use if it is an Applicable Large Employer (ALE).

  • An ALE must have at least 50 full-time employees in the prior year to qualify for the current calendar year.

Important Filing Deadlines for Small Business Tax Forms

A critical aspect of managing your business taxes is adhering to applicable deadlines. Failing to meet each deadline can result in penalties and increased IRS attention.

Your quarterly estimated tax submissions are due four times annually by:

• April 15th

• June 15th

• September 15th

• January 15th

Payroll filing deadlines are also due on a quarterly basis, but follow a different schedule:

• April 30th

• July 31st

• October 31st

• January 31st

Submit W-2 and 1099 to employees, freelancers, and the IRS by January 31st of the following tax year.

Common Mistakes When Filing Business Tax Forms

Busy business owners tend to make mistakes when handling their own tax and accounting work. Avoid these common mistakes to ensure a smoother tax season:

• Filing the wrong form for your entity. Bookmark this handy guide to ensure you're using the correct forms.

• Missing payroll filings. Set calendar reminders to ensure you adhere to each payroll filing deadline. Payroll-related penalties can be particularly severe.

• Forgetting estimated tax payments. Failure-to-pay and failure-to-file penalties can accrue quickly. Set calendar reminders to meet each deadline and use tools like 1-800Accountant's free quarterly estimated tax calculator to estimate what you owe.

• Failing to issue Schedule K-1 to partners or shareholders. Partners and shareholders cannot complete their personal income tax returns without a Schedule K-1.

Work with Small Business Tax Professionals

As your business matures, your tax obligations grow along with the number of forms you'll need to manage to remain compliant. Leave stress behind when you embrace expert support from 1-800Accountant, America's leading virtual accounting firm. Your team of business tax professionals will:

• Identify every form required.

• Ensure each form is prepared accurately.

• Submit each form by the appropriate deadline.

• Avoid penalties due to regular submissions of error-free work.

We provide a wide range of tax services to free up your time, allowing you to focus on running your business while we handle the accounting.

Schedule a free 30-minute consultation to learn more and get started.