Find out more about Business Taxes
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by LegalZoom staff
Updated on: January 15, 2024 · 2 min read
To prepare your business taxes, we've provided a few resources to get you ready.
First, gather your income and expense documents. This could be from bank statements, credit card statements, invoices, or receipts.
If you made an election to be treated as an S corporation, it's important that you address how you pay yourself, such as by issuing a reasonable salary through payroll, taking cash distributions out of the LLC's bank account, or a combination of both. The correct choice depends on many factors you will want to consider and discuss with your tax expert. Take a look at these articles for helpful tips:
When recording transactions, only include business income and expenses. You can do this year-round to ease the burden during tax season.
Personal expenses are not deductible on your personal taxes. It's important not to combine your personal and business accounts to ensure your books and records are accurate.
There are several options to help you make sure all of your income and expenses are ready for tax time. Here are a few recommendations.
1. Make sure all your income and expense transactions are recorded. Here are some links to help you do this:
2. Has everything been recorded? The next step is to “reconcile your accounts."
3. Now that you are reconciled, it's time to review your Profit and Loss Report. This video below will help you get started:
Reach out to a tax expert regularly—especially toward the end of the year—to discuss how to get the best possible tax outcome and other potential recommendations, such as making quarterly estimated tax payments.
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