When it comes to your business taxes, it is essential to ensure that you do everything right. From filing the right tax ID application to getting your taxes filed on time, every detail is important. Businesses that file their annual income tax late or inaccurately are bound to pay a penalty. That is why you should make sure you understand if your business must file an annual income tax.
Do all businesses need to file an annual income tax? The short answer is that yes you probably do need to file an annual income tax. The only exception is a partnership, which files differently. You will need to find the proper tax forms, such as an LLC or s-corp application. You also must have everything on side in order. This means making sure you have your employer identification number if you have any employees. The businesses which file an annual income tax must use their EIN which is their unique identification number.
If you need to know how to obtain an EIN, it comes from the IRS. However, businesses do not have to apply for EIN directly with the IRS. You can use a service that will speed up the process while making it less confusing than going directly through the IRS. With a simple EIN number application, you can apply for your ID and start your taxes.
When filing, you will have to handle your annual income taxes, which include paying estimated taxes. Estimated taxes are payments you make throughout the year on the money you expect to earn. As the name suggests, they are based on estimated income. The idea is to take care of your tax liability for the year so when you do file your taxes, you won’t have a huge tax bill. The tax forms you use will either be for your type of business or you can file as part of your personal taxes if you are a sole proprietor without any employees.
Remember that to start filing your annual income taxes, you will need to make sure you apply for an EIN and obtain one and ensure your information is in order. If you need any help, make sure to reach out to a service that specializes in tax-related assistance.