Running a business on your own is exciting. You get to follow your dreams and be your own boss. But there’s also hard work and lots to think about – including sole proprietor taxes. Not sure if you are a sole proprietor? Don’t know where to start on sole proprietorship taxes? Take heart – we’re here for you!
Form 1065, U.S. Return of Partnership Income is used to report your partnership’s income, gains, losses, deductions, and credits along with general business information to the IRS.
Forming a partnership can have its advantages for your small business. It also means a different way of completing your taxes.
IRS Form 1120-S is the tax form S corporations use to file a federal income tax return. This tax form informs the IRS of your total taxable earnings in a tax year. It’s used to determine an S corporation’s business income, gains, losses, tax credits, and deductions.
All domestic corporations must file tax form 1120, even if they don’t have taxable income. Corporations in bankruptcy must also file Form 1120. Businesses taht have elected to be taxed as a corporation including partnerships and LLC's need to file a timely 1120.
All businesses that sell taxable goods and services in New Jersey must register with the New Jersey Division of Revenue and Enterprise Services to collect Sales Tax. This includes any person who makes seasonal or occasional sales at events such as a flea market or craft show.
Once your business is registered to collect Sales Tax, you will be required to file quarterly returns and make quarterly payments. Some sellers must also make monthly payments. You must make monthly payments only if you:
Collected more than $30,000 in Sales and Use Tax in New Jersey during the prior calendar year; and
Collected more than $500 in the first and/or second month of the current calendar quarter.
