The way a business pays its income taxes depends heavily on its structure. There are several types the IRS, state, and local tax authorities look at for certain filings and calculations. The professional income tax prep team at ZP Tax in Silver Spring, MD, knows all the rules and regulations for businesses to ensure compliance.
Here are the different types of business structures and how their income tax returns are generally filed:
- S Corporation: This type of entity requires shareholders to pay income taxes on their individual share of the profits and losses from the business. Corporate income tax filings are typically not required. Filers must use the IRS form Schedule K-1 to complete their returns for the previous fiscal year.
- Limited Liability Company (LLC): Businesses with this organizational structure protect their owners from personal liability for business debts, claims, and lawsuits. The LLC generally doesn’t pay income taxes, but the owners must do so on profits and losses on IRS form Schedule C. A partnership LLC uses IRS form 1065.
- Corporation: Like the previously mentioned business structures, the owners of a corporation are required to pay income taxes on profits and losses using IRS form 8832. One exception is the C corporation, where the income is taxed prior to any dividends or other distributions.
When it comes to tax filing, businesses have more complexities than individual filers. ZP Tax is your source for expert income tax prep work that emphasizes accuracy and compliance. The firm provides a range of business tax preparation services for corporations, LLCs, sole proprietorships, non-profits, and other types of companies.
Whether you need expertise with the filing of delinquent returns, prior year returns, or amended returns, ZP Tax is 100% committed to exceeding your expectations for thorough business income tax prep.
To schedule an appointment to discuss setting up a new business structure or if you have questions about your current business, call ZP Tax today at (301) 587-4829. Visit their website to learn more about the wide range of income tax prep services to keep you on track.