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How Businesses Should Prepare For Filing Its Taxes

Tax preparation for businesses depend on their legal status. It is according to this parameter that you will be able to determine which is the return to file, but the way in which you carry out your activities will determine if you will have to produce slips that will be used by other taxpayers (such as W2s for your employees).

The Fiscal Year

The date of production and payment also varies according to the end of the fiscal year. The end of the financial year is chosen for various reasons at the time of the creation of the company. The exercise cannot last more than 371 days (53 weeks). This small rule could have an influence on the time of incorporation.

The Time Frame

The incorporated company has 6 months to file the income tax return following the end of its financial year, but must pay the balance of the tax due within 2 months or 3 months, depending on the government (federal or state) and depending on the type of tax. The complexity of this type of statement requires that you usually use an accountant or tax preparation services in Denver, because the starting point is a complete financial statement that includes an income statement and a balance sheet, also called a statement of financial position.

Incorporation and Filing

For all incorporated companies (Inc. or LLC), tax reporting is mandatory. You will need to file the corporate income tax return. It includes several pages, but as for the individual, there could be many additional forms and annexes to be produced depending on the type of income, the transactions to be declared, and the tax balances to which the company is entitled.

Providing Documents

You must not forget to file information returns that apply to your situation, such as providing information concerning your foreign income and your property to the outside USA territory if they exceed a certain threshold. Penalties are significant in the case of non-production for this type of form. As you can see the corporate income tax return can get quite large. Fortunately, if none of the schedules apply to you, and you have no income, and you meet all the criteria there is an abridged version of the mandatory forms. You will still need to provide your financial statements.

Be Organized

Whether you decide to file yourself or give the task to a Preparer, being organized is the key to avoiding getting lost in your calculations and in the different data that you will have to manage at the time of the declaration. However, you will need to ensure that you have received all of your tax slips before filing, which is why it is appropriate to plan to file your tax return approximately one month before the due date.

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