When preparing tax returns for small companies, there are a few important considerations to take into account. The majority of these concerns the accounting methods that are used to report income and expenses for businesses. Depending on whether the company is a cash or accrual entity the accounting method used could be one of the two. A lot of small business owners must also make a quarterly estimated tax payments. These payments can be made online via the Electronic Federal Tax Payment System or by submitting a form 1040-ES along with a tax payment.
Intuit offers several levels of service to help small businesses with tax returns. For those who prefer an approach that is more hands-off, they can go with the online TurboTax package or the more involved TurboTax Business software. This option pairs entrepreneurs with a tax expert who will complete their tax return from start to end.
TurboTax turbotax small business Business can also help with the preparation of W-2, 1099-MISC, and 1040-DIV for employees and contractors. It also calculates the estimated tax payment required by the IRS in the event that you expect to owe more than $1,000 in taxes.
However it can be costly. With a price of $200 for the federal filing and $55 for each state, it’s easy to increase to. There are many advantages, including unlimited live support from an expert and an assurance of 100% accurate calculations. However, these extra features aren’t easy for small companies to afford. There are alternatives that are less expensive than TurboTax.
