Which Income Tax Form Do I Use for My Business?

Question: Which Income Tax Form Do I Use for My Business?

Preparing business income taxes (federal and state) is not a job for the faint-hearted. The first trick is figuring out which income tax form to use.

Answer:

Business Income Tax Forms for Business Types

• If you are a sole proprietor or single-member LLC, you file business taxes on Schedule C, along with your personal tax return. You will need the tax software version that includes Schedule C.
  
• If you are a corporation, you need tax software that includes Form 1120
  
• If you are an S corporation, you need tax software that includes Form 1120S
  
• If you are a partnership or multiple-member LLC, you need tax software that includes Form 1065.

All business types except corporations pay business income taxes through their personal income tax returns. These are called "pass through" taxes because the tax passes through to the individual business owners.