As a business owner there are tax forms you need to be concerned with getting prepared and to recipients by the end of January. The forms that affect most business owners are:
1. W-2 forms for your employees.
2. 1099-Misc – these forms go to people or companies that you paid for services or rent in the amount of $600 or more. If the businesses are incorporated you do not need to send them. Keep in mind that an LLC does not mean the company is incorporated. You should ask each person or company who you pay for services or rent to fill out a form W-9 to keep in your files. This form tells you the federal ID, their mailing address, and what type of entity they are. The W-9 can be found at http://www.irs.gov/pub/irs-pdf/fw9.pdf.
3. 1099-Int – some companies borrow money from owners or highly paid employees as a way of financing the company and paying the individuals interest; because of this, the company needs to issue 1099-Int forms to show the lender what they were paid in interest.
There are other forms that your specific business my need to file you should talk to your tax preparer for a complete list specific to your company but the three above are the most common.
The Wassman CPA Services website and blog is meant to offer general information to our readers. The information provided is not intended to replace or serve as a substitute for any accounting, tax or other professional advice, consultation or service. You should contact Wassman CPA Services for advice concerning specific matters prior to making any decisions.