The following are only a partial list of tax forms taken from the SBA Internet site, and may not all apply or be present. Additional forms of ownership tax forms are also available. To gather further information visit http://www.sba.gov/co/aboutus.html.
Sole Proprietorships
1. Form 1040: Individual Income Tax Return
2. Schedule C: Profit or Loss from Business
3. Schedule SE: Self-Employment Tax
4. Form 1040-ES: Estimated Tax for Individuals
5. Form 4562: Depreciation and Amortization
6. Form 8829: Expenses for Business Use of Your Home
7. Employment Tax Forms
Partnerships
1. Form 1065: Partnership Return of Income
2. Form 1065 K-1: Partner’s Share of Income, Credit, Deductions
3. Form 4562: Deprecation
4. Form 1040: Individual Income Tax return
5. Schedule E: Supplemental Income and Loss
6. Schedule SE: Self-Employment Tax
7. Form 1040-ES: Estimated Tax for Individuals
8. Employment Tax Forms
C Corporations
1. Form 1120 or 1120-A: Corporation Income Tax Return
2. Form 1120-W: Estimated tax for Corporation
3. From 8109-B: Deposit Coupon
4. Form 4625: Depreciation
5. Employment Tax Forms
6. Other forms needed
Fore more information, visit the following sources:
Colorado Department of Revenue
http://www.revenue.state.co.us/TPS_Dir/home.asp
Colorado.gov
Official Site of the State of Colorado
http://www.state.co.us/oed/business-resource-guide/index.cfm
Small Business Tax Advantages
IRS Guidelines for Business Tax Deductions:
1. Advertising
2 . Bad debts
3. Car and truck Expenses
4. Commissions and Fees
5. Conventions and Trade Shows
6. Depreciation on Property Owned by Business
7. Employee Benefit Programs
8. Insurance
9. Interest
10. Legal, Accountings, and Professional Services
11. Office Expenses
12. Pension/Profit Sharing Plans
13. Rent
14. Repairs/Maintenance on Business Premises and Equipment
15. Supplies
16. Taxes and Licenses
17. Trade Publications
18. Travel, Meals, Entertainment (limited to 50%)
19. Utilities
20. Wages
Source -- IRS Publication 535
Tax Advantages of Incorporation:
1. Leasing Assets to the business ( i.e. automobile or real estate)
2. Fringe Benefits (i.e. Partnerships and LLC can deduct 30% whereas Corps. Deduct 100%)
3. Self-Employment Tax Savings (i.e. S Corp. owner compensation is subject to payroll taxes while any money left in the business for reinvestment is not subject to self-employment tax)
Avoid the IRS “Hobby” Rule:
To receive most of these tax benefits, the business must show a profit in three out of five years.
Five Simple Rules to Avoid an IRS Audit:
1. Report all Income- keep all documents in place
2. Do not be Greedy- if high deductions attach (Form 8275) with your return
3. Justify your Numbers- keep logs to display qualified deductions
4. Earn your Earned Income Credit- income credit may be available
5. Fix Mistakes-professional advising suggested
Tax and Tax Forms:
Small Business Taxes and Management
http://www.smbiz.com/
IRS one-stop shop for small business
http://www.irs.gov/businesses/small/index.html
Extensive information to tax forms and filing
http://www.el.com/elinks/taxes/
401k resource link
http://www.401khelpcenter.com/
Software product for taxes
http://quickbooks.intuit.com/