- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
First thing you need to look at is the type of entity you have formed for your business:
1) if it a single member LLC or just a sole-proprietor business, then the business income and expenses would be reported in your personal return as a self-employed income. This business is shown on Sch C of your personal tax return. There is no separate tax return to be filed
2) if it a Corporation, an S-Corporation or a partnership, then the income and expenses for it would get reported on a Form1120, Form 1120S or Form 1065, respectively. These are separate business tax returns.
If you are required to file the Schedule C, or Form 1120S or Form 1065, then you would need to pay quarterly estimated taxes to the IRS under your Social Security number on the bottom line profit that you will be receiving from this business. If you do not make estimated tax payments and then owe money to the IRS, they will collect penalty and interest on this income from Jan1 of the tax year you are reporting this income for.
If this is a regular C Corporation, then the business will need to make estimated tax payments to the IRS under the entity's EIN.