Filing and Paying Business Taxes by ja2349

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									8                                            Educate your community. Tell everyone about Oklahoma Small Business News. www.osbnnet.com                                                                 OSBN - April, 2003
Legal Pad
Filing and Paying Business Taxes
BY DARIAN ANDERSEN                                                                                               Files You File To Report Taxes:
Attorney - dband@buslaw.net                             Sole Proprietor
                                                        May be liable for:                                                         Use Form:
  Tax season! The easiest way to live through           Income Tax                                                                 1040 and Schedule C1 or C-EZ (Schedule F for farm business1)
tax season is to know what to do and to do it           Self-employment Tax                                                        1040 and Schedule SE
before the deadline. Words that are easier to           Estimated Tax                                                              1040-ES
say than do. But let’s talk about what to do.           Employment Taxes:
  You likely operate your business in one of            Social Security and Medicare taxes and income tax                          943 for Farm employees, 941 for all others
the following forms:                                      withholding
                                                        Federal Unemployment (FUTA) Taxes                                          940 or 940-EZ
1. Sole proprietorship
                                                        Depositing Employment Taxes, Excise Taxes                                  81092
2. Partnership
                                                        Excise Taxes                                                               See Excise Taxes
3. Limited liability company                            Partnership
4. S-corporation                                        Annual Return of Income                                                    1065
5. C-corporation                                        Employment Taxes                                                           Same as Sole Proprietor
    The form of business you operate                    Excise Taxes                                                               See Excise Taxes
determines what taxes you must pay and how              Partner in a Partnership (Individual)
you pay them. This article is short and gives           Income Tax                                                                 1040 and Schedule E3
some useful guidance but does not cover very            Self-Employment Tax                                                        1040 and Schedule SE
much of the whole subject of taxes for                  Estimated Tax                                                              1040-ES
                                                        Corporation or S Corporation
businesses.
                                                        Income Tax                                                                 1120 or 1120-A (Corp.), 1120S (S Corp.)
The following chart appears in the IRS                                                                                                                      2
                                                        Estimated Tax                                                              1120-W (Corp.) and 8109
instruction sheet for small businesses:                 Employment Taxes                                                           Same as Sole Proprietor
   The four general kinds of business taxes             Excise Taxes                                                               See Excise Taxes
are:                                                    S Corporation Shareholder
Income Tax                                              Income Tax                                                                 1040 and Schedule E3
Self-Employment Tax                                     Self-Employment Tax                                                        1040 and Schedule SE
Employment Taxes                                        Estimated Tax                                                              1040-ES
                                                               1. File a separate schedule for each business. 2. Do not use if you deposit taxes electronically. 3. Various other schedules may be needed.
Excise Taxes

                                                           As a supplement to the chart (above), a              automatically. If you prepare your own tax         Payroll Taxes.
                               Specializing in:         limited liability company may elect to be               returns, then follow the same guidelines. I         When you file a Form SS-4 to obtain an
                                 • Desktop Publishing
                                   Training             taxed as a partnership, a corporation or a              believe it is important for you to know how      employer identification number (EIN) you
                                 • Filemaker Pro        disregarded entity. If the election is to have          the system works even if you rely on a tax       will be sent a coupon book on which you
                                   Database and Web
     Providing Computer Training
                                   Development
                                                        the limited liability company be taxed as a             preparer to file the tax returns.                can report payroll taxes withheld. Form 941
      in Oklahoma Since 1989                            corporation or a partnership, follow the                  Use the guidelines provided by the Internal    is required quarterly on or before April 30,
     Mac and PC Training classes offered in:            guidelines above. If it is a disregarded entity         Revenue Service (IRS) and the State Tax          July 31, October 31 and January 31.
      • Basic Mac         • Freehand
      • Filemaker Pro     • Microsoft Office            it is treated like a sole proprietorship for tax        Commission on the Internet. The addresses          Tax Returns.
      • Adobe Illustrator • QuarkXpress                 purposes.                                               are: www.irs.gov and www.oktax.state.ok.us.         Individual and partnership tax returns are
      • Adobe Pagemaker   • Scanning                       Now, the following information is the                Estimated Tax Payments.                          due April 15. Corporate tax returns are due
      • Adobe Photoshop   • PrePress Printing
                                                        practical way to comply. If you have a tax                 Individual. As an individual sole             March 15. Extensions can be filed with either
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                                                                                                                payments of your estimated federal and state     returns, for 3 additional months. Electronic
                                                                                                                income taxes and federal self-employment         filers use Form 8878.
                                                                                                                tax once you start making a taxable profit.          Darian Andersen is an Attorney in
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