When preparing tax returns for small-sized businesses there are a few important aspects to take into account. The majority of them involve accounting methods used to report the company’s earnings and expenses. Based on the type of business entity that is being formed, this could be either the cash or accrual method. In addition, many small-sized business owners are required to make quarterly estimated tax payments. These payments can be made using the Electronic Federal Tax Payment System or by submitting 1040 ES forms with a tax refund.
Intuit offers multiple levels of service to help small-sized businesses with their tax returns. For those who prefer an official source turbotaxsmallbusiness.com/top-5-most-promising-virtual-data-rooms-of-2021/ approach that is more hands-off, they can choose the online TurboTax package or the more complex TurboTax Business software. This option pairs business owners with a tax professional who will prepare their tax returns, from start to finish.
TurboTax Business can also help with the preparation of W-2, 1099-MISC, and 1040-DIV forms for contractors and employees. It will also calculate estimated tax payments required by the IRS in the event that you expect to owe over $1,000 in taxes.
The program isn’t cheap, though. With a cost of $200 for the federal filing and $55 per state, it’s bound to add up. There are several perks, including unlimited live assistance from a professional, and a 100% accurate calculations guarantee. However, these extra features aren’t easy for small businesses to afford. There are alternatives that are less expensive than TurboTax.