I already filed my personal income tax for me and my wife but we also have a small business that we need to file. How do we go about that now?

[MichaelMc]

How to file a tax return for a small business depends on how your business is organized.

If your business is a sole proprietorship or a single-member LLC, these businesses should be filed on Schedule C (Form 1040) as part of your personal income tax return. As you have already filed your tax return, you would need to amend your tax return and include your business income and expenses. TurboTax Self-Employed (online) or TurboTax Home & Business would be the right choice to prepare and file that return.

If your business is not a Schedule C business, for example, a corporation, partnership, or multi-member LLC, you would need TurboTax Business (Windows Only) to prepare the appropriate tax return.

[njbrowne]

If it is a multi-member LLC what is the best way to file so that I can include those deductions on my personal income tax?

[MichaelMc]

You would need to file a Form 1065 partnership return, as partnership is the default filing status for a multi-member LLC unless you elected to file as a corporation. Generate the Schedule K-1 for each member, then carry those back to each member's personal income tax return. For future reference, you always want to complete the business return before you prepare your personal tax return.

[estherking]

My business is a sole proprietorship and I already filed my personal taxes thru Turbo Tax self- employed, this is my first year doing it myself and my accountant always did the personal and business separate and  suggested I do the same... Now I'm finding out that's not the way to go.... Is there a way to file businesses separately? And if I do need to amend what happens to the tax return I already got??

[AmyC]

@estherking  A sole proprietorship can elect to file as an S corp or can file as a disregarded nonentity. If you filed the paperwork for an S corp, you would use that software and receive a k-1 form that goes on your personal return.

Since you don't know about the filing, I believe you never asked to be treated as an S corp which means you are the disregarded nonentity and file the sch C as a part of your personal return. You will not need to amend if you filed your sch C business as part of your return, unless you are not a disregarded entitty.

See Business Structure to help you decide what is best for you.

[estherking]

This all sounds confusing to me, but thanks for the answer!! Okay, so the business I have, none of that income went into personal use, so I would not have to file any of it with my personal taxes right??
So can you step me in the right direction for either an S corp or a non entity. Thanks for your help!

[ToddL99]

Please clarify - what kind of business do you have? 

Any business income you have will need to be reported on your tax return (except a C-Corporation).

If you have an S-corporation or a partnership, you would need to file a separate business return using TurboTax Business. The income or loss from those businesses would "pass-through" to your personal return by way of a Schedule K-1.

If you have a sole-proprietorship or single-member LLC, the income is reported directly on your tax return, using Schedule C. TurboTax Self-employed (or Home & Business) is required to prepare Schedule C and related tax forms.

[estherking]

My business is sole-proprietorship, and this is my first year filing with Turbo Tax... In the previous years my accountant did them for me (not thru Turbo Tax) and always did it separate from the personal return and he recommended I do that again. That's why I already filed the personal return and did not file the business return with that... So now I'm not sure what or how to file the business return.

[DaveF1006]

You don't need to file a separate business return from your personal return if you are a sole-proprietor.  You can use either the Turbo Tax self-employed if you prefer the online version or Turbo Tax Home and Business version if you prefer using the software.

Now you will need to amend your return so you can file your business return with your personal return. You may need to upgrade your product so you can file your business return. With the recent tax law changes, you won't be able to amend until 3/26 because the IRS is updating all their forms to accommodate the American Rescue Plan.

Once available, you can:

1. Log into Turbo Tax assuming you use Turbo Tax online
2. When you reach the landing page, scroll to the bottom where your tax returns and documents are.
3. Select 2020, and click on the option to amend and change return.
4. Answer the questions about why you are amending
5. Once you begin working in your return, your refund monitor will reset to 0. 
6. Go to federal>income and expenses>Self-Employment>show more
7. Self-employment income and expenses>start
8. Begin working on your business return.
9. I would recommend using the Turbo Tax Live Service for your first year just to make sure you enter everything in correctly. Once this first year is over, you will have gained the experience and confidence in doing this on your own in the ensuing year.
10. Reach out to us anytime after 3/26, when you can start amending your return.

[Critter-3]

LOOK at the prior year return ... what form is the business on ???   A Sch C included with the form 1040?

[VolvoGirl]

If you are a Single Member LLC as an S Corp you need to file a separate 1120 S Business return.  You should do the S Corp return first since you get a K-1 or W2 from the S Corp to enter into your personal return.

If you are not a Single Member LLC filing a S Corp return then it is a disregarded entity and you file it on Schedule C in your personal return.   Disregarded Entity means you dont file a separate Business return.  You file it as personal self employment on Schedule C.

[estherking]

Will amending affect my return that I already received?? 

[VolvoGirl]

Do you mean the refund you received?  Did you figure out what kind of business return you need to file?  Does it need to go on your personal return on Schedule C or a separate Business return?

[estherking]

Yes the refunds I received and according to my accountant and the help I got on here I should've filed with my personal.