Small Business/Self-Employed/Other Business > Starting or Ending a Business

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Frequently Asked Tax Questions

Small Business/Self-Employed/Other Business - Starting or Ending a Business

Rev. date: 1/2009

I am starting a small business. What assistance can IRS give me?

Home Used for Business
New trade or business
Small Business
Starting a Business and Keeping Records
Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)

The IRS can provide information on taxes, recordkeeping, accounting practices, completing Federal business and employment tax returns, and meeting other Federal tax obligations.
Much of the assistance is free. The service is called Small Business Tax Education Program, or STEP.
Our website, www.irs.gov, has a lot of information for the new business owner.

NOTE: Items to check on the website include "Around the Nation" for seminars in your area, Tax Info For Business and “Small Business and Self Employed One Stop Resource” or Tax Topic 103, Small Business Tax Education Program (STEP).

Rev. date: 1/2009

I just started a small business and want to know if I have to file my income taxes quarterly or at the end of the year?

Estimated Tax
Estimated Tax for Individuals
Home Used for Business
New trade or business
Self-Employment
Self-Employment Tax
Small Business
Starting a Business and Keeping Records
Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)
Tax Withholding and Estimated Tax

The Federal Income Tax return is filed annually.

When you file the income tax return at the end of the year:

You include the income from the business on the Form 1040 (PDF), U.S. Individual Income Tax Return, Form 1040, Schedule C (PDF), Profit or Loss from Business, and Form 1040, Schedule SE (PDF), Self-Employment Tax.
If estimated tax payments were made during the year, they will be claimed on the individual income tax return as a payment.

Estimated tax payments are paid quarterly.

As a self-employed individual, if after deducting withholding and credits you expect to owe more than the amount allowed by law at the end of the year:

You should make estimated tax payments on a quarterly basis.
Form 1040-ES (PDF), Estimated Tax for Individuals, will assist you in determining if estimated tax payments are due and how they are paid.

Rev. date: 1/2009

What is the due date for business returns?

Publication 509
Tax Calendar

Some forms and entities have due dates other than the April 15th due date. The instructions for the each type of form used will have the appropriate due date(s) noted:

The sole proprietor's Schedule C of income and expenses is attached to the Form 1040 (PDF). Therefore, the due date is the 15th day of the fourth month following the end of your tax year. For most taxpayers who are on a calendar year, this is April 15.
A partnership generally must conform its tax year of the partners unless the partnership can establish a business purpose for having a different tax year. The generally definition states that you must file your return by the 15th day of the fourth month following the end of your tax year.
A corporation may use either the calendar year, or a fiscal tax year. The corporate tax return is due by the 15th day of the third month following the end of the tax year.
An S corporation generally must use the calendar year, unless the entity can establish a business purpose for having a different tax year. The due date is the 15th day of the third month following the end of the tax year.

Rev. date: 1/2009

How do I find out about whether or not my business needs to collect sales tax?

New trade or business

Your question is a state tax question. Your state revenue department should provide information regarding sales tax to you. To access the state you need to direct your question to, please go to our State Links.


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