Small business tax preparation
Small business tax preparation is the federal and California return for a business you own: a Schedule C on your personal return if you are a sole proprietor or single member LLC, Form 1120-S and California Form 100S for an S corporation, Form 1065 and California Form 565 for a partnership, or Form 1120 and Form 100 for a C corporation. It is for the contractor, the restaurant owner, the salon owner, the truck owner operator, and the consultant who works from a home office in the Valley.
One rule governs how we work: we reconcile the books before we prepare the return. A return built on unreconciled numbers is the most common reason a business gets a notice, and fixing it after the notice arrives costs more than getting it right the first time. We prepare business returns at our office on Tampa Ave in Reseda. Call (818) 401-7468 to set a time to bring your records in.
What is included in small business tax preparation?
- Reconciliation of your books to the year end bank and credit card statements before anything is prepared
- Schedule C for sole proprietors and single member LLCs
- Form 1120-S and California Form 100S for S corporations
- Form 1065 and California Form 565 for partnerships, with a K-1 for each partner
- Form 1120 and California Form 100 for C corporations
- California LLC annual tax and gross receipts fee, calculated and scheduled
- Federal and California estimated payment schedules for the coming year
- Owner compensation review for S corporation shareholders
- Depreciation of equipment, vehicles, and improvements, including Section 179 where it applies
- A complete copy of the filed return and the K-1s
What should I bring?
- Prior year business return
- Year end bank and credit card statements, or your bookkeeping file
- Payroll reports for the year, including Forms W-3 and 941
- 1099s you issued and 1099s you received
- Asset purchase records: invoices for equipment, vehicles, and improvements
- Loan statements showing the year end balance and interest paid
- Secretary of State filing and IRS EIN letter if the entity is new
How do fees work?
Fees are based on the forms and schedules your business requires and the condition of the records. A reconciled bookkeeping file costs less to prepare than a shoebox of receipts. Fees are never based on the size of a refund. You receive a written quote before work begins, and if the scope changes once we are inside the books, such as a second entity or a year of missing reconciliations, we tell you before we continue. See the fees page.
What happens if my books are not reconciled?
We reconcile them first, as a separate step with its own quote, and then prepare the return. If the books are more than a few months behind, our bookkeeping and accounting service brings them current and can keep them that way every month, which makes next year’s return faster and cheaper to prepare.
Should I be an S corporation?
That depends on your profit and what you pay yourself, and it is a decision for before December 31, not during tax season. We review entity choice in a scheduled tax planning meeting and put the answer in writing. Business owners across the San Fernando Valley bring their returns to our Reseda office; it sits on Tampa Ave, a short drive north of the 101.
Questions about small business tax preparation
Do you reconcile my books before preparing the return?
Yes, always. We match your bookkeeping file to the year end bank and credit card statements and fix the differences before we build the return. A return built on unreconciled numbers is the most common reason a business receives a notice.
What is the California LLC fee and does it apply to me?
Every California LLC owes an annual franchise tax, and an LLC whose gross receipts pass the Franchise Tax Board threshold for the year owes an additional fee on a sliding scale. We calculate both, confirm the due dates, and include them in your estimated payment schedule.
When is my business return due?
Partnership and S corporation returns are due March 15. Schedule C filers and calendar year C corporations file by April 15. An extension moves the filing date, not the payment date, so we calculate what to pay with the extension.