How To Structure Your Company’s Tax Return

A tax return is a necessary evil in business. Without one, you’re blind. You know you’re supposed to file one. But even with the obligation to file one, many companies don’t understand the ins and outs of that. Filing a tax return can be complicated, especially if you’re a small company.

The small size of many small- and medium-sized companies makes them especially susceptible to opportunities from the Internal Revenue Service (IRS) to change its rules and regulations. Even small changes can significantly impact a business, whether that’s changes to the way it treats its employees, its expenses, or its taxes.

To make things even trickier for a small company that doesn’t have a large marketing budget and doesn’t otherwise have many employees, the IRS changed how it calculates its tax rates for small businesses. The new rules affect tax returns filed in 2018 and change how the IRS classifies small companies.

The first type of tax return is the simple 1040 form that all taxpayers must file. The form is designed to help the IRS ensure that every taxpayer is paying the right amount of taxes.

The second type of tax return is the Schedule C form, which allows companies to report their business income and expenses. This form can be used by companies with more than $5,000 in gross receipts but less than $500,000 in net income.

The third type of tax return is the Schedule C-EZ form, which allows a company to keep its business income and expenses below the threshold for reporting on a Schedule C form.

The fourth type of tax return is Form 1120S. This is the most common form that small businesses use because it makes it easier to calculate their tax liability. The form can be used by companies with gross receipts from business activity of $5 million or less in a year.

If your company has more than 200 employees, you have to file an annual report for each year you have been in business. That means you will need to file two forms: one for income from operations and one for expenses from operations. If your company did not have any employees during the year, you do not need to file this type of return.

A tax return is a necessary evil in business. Without one, you’re blind. You know you’re supposed to file one. But even with the obligation to file one, many companies don’t understand the ins and outs of that. Filing a tax return can be complicated,…