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Business Income Taxes


What are Business Taxes?

All businesses except partnerships must file an annual income tax return. Partnerships file an information return. Which form you use depends on how your business is organized. See Table below to find out which return you have to file.

The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay. If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. If you are not required to make estimated tax payments, you may pay any tax due when you file your return.

Which Business Tax Forms to File


Estimated tax

Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year.


Sole proprietors, partners, and S corporation shareholders

You generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay your estimated tax. For more information, see Publication 505, Tax Withholding and Estimated Tax.


Corporations

You generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return. Use Form 1120-W, Estimated Tax for Corporations, to figure the estimated tax. You must deposit the payments as explained later under Depositing Taxes.


Forms

940 – FUTA Return
941 – Quarterly Payroll Return
944 – Annual Payroll Return
1040
1040-ES
1040-ES NR
1065 – Partnership Return
1120 – Income Tax Return (Corporation)
1120 S – Income Tax Return (S Corporation)
1120-W – Estimated Tax for a Corporation
Schedule C – Profit & Loss in Business
Schedule E – Supplemental Income & Loss
Schedule F – Farming
Schedule SE – Self Employment

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