A tax guide for small-business owners

The tax filing deadline is quickly approaching. Due to the pandemic, most businesses have until May 17 to file their returns this year.

In a perfect world, you’d be thinking about tax prep year-round, keeping records organized to help ease your burden, mentally and financially, come tax time.

But 2020 wasn’t a perfect year.

Whether the pandemic forced you to rethink your business model, start a new business or borrow from the Paycheck Protection Program, here are some tips for filing this year.

TAX PREP BASICS

1. KNOW YOUR DEADLINES

Tax filing deadlines vary depending on business entity type . This year, for example, the deadline for corporations was April 15, while sole proprietors have until May 17 to file.

Other tax deadlines include estimated tax payments, which are due quarterly, and payroll taxes, which are deposited monthly or semiweekly.

2. GATHER YOUR FINANCIAL RECORDS

Pull together your financial records before starting your taxes. That includes payroll documents, income statements, depreciation schedules, bank and credit card statements, and receipts for large purchases . You’ll need this information to complete your business tax returns.

3. COMPLETE THE PROPER TAX FORMS

Prepare the proper tax forms to report any business income or loss, legitimate deductions and estimated taxes. These forms will be filed along with or in addition to your personal 1040. Common tax forms include:

— Schedule C: Report profit and loss (sole proprietor) .

— Form 1120 or 1120S: Report income, gains, losses, deductions and credits (corporations).

— Schedule K-1: Report business expenses, income and losses (partnerships). Typically filed along with Form 1065.

You may also need to file specific forms for depreciation , home-based...