How to file taxes as a small business in the US

For many small businesses, filing taxes can be a daunting responsibility. From navigating federal, state, and local tax requirements to keeping track of every expense, you want to make sure you get everything right.

But the process can be simpler than you might expect, especially if you use the right tools. In this quick and easy guide, we’ll explain what exactly you need to do throughout the year, when you need to do it, and — importantly — how you can do it quickly and compliantly.

So let’s begin.

What taxes do you need to pay?

The taxes you’ll need to pay will vary based on your legal structure and your level of income.

As a starting point, almost all businesses must pay federal income taxes. Additionally, some states and local jurisdictions impose income or sales taxes on business earnings.

For sole proprietors and LLC members, self-employment tax is another factor to consider. This tax covers Social Security and Medicare and applies to net earnings from self-employed activities.

Your business structure can also impact your filing responsibilities. For instance, sole proprietors and LLC owners often report business income on their personal tax returns, while S-corps must file separate business returns.

When you first register your business with the tax authorities, ensure that you understand what your full obligations are.

Tax and Compliance —

10 min

Which taxes are paid by employers in the US?

Find out which payroll taxes you need to pay if you have employees in the US, including income tax, FICA taxes, and FUTA and SUTA contributions.

How to file your taxes

Once you’re aware of the taxes you need to pay, you need to know how to file and pay them. This can be done through the following steps:

Collect and organize your financial records

Accurate financial records are the cornerstone of effective tax filing. As the year progresses, you should store and organize all your records for income, expenses, and payroll, as well as any assets purchased throughout the year.

This may sound like a lot of work, but with the right tools, it can be quick and simple. With Remote Payroll, for instance, all your payroll-related expenses are automatically collected and organized, making it painless to retrieve and understand all the information you need when filing.

Understand and choose your deductions

As a small business, it’s highly likely that you will be eligible for tax deductions, and this is an important part of filing your taxes.

Common deductions for small businesses can include:

• Home office expenses

• Vehicle and travel expenses

• Supplies and equipment

• Employee benefits

• Professional services

• Marketing and advertising

• Rent and utilities

• Insurance

• Education and training

• Depreciation of assets

By carefully documenting your expenses throughout the year, you can maximize eligible deductions to reduce your taxable income.

Understand the filing and payment schedules

In the US, businesses generally need to file federal taxes annually. However, you may also be required to make quarterly estimated tax payments.

Missing these deadlines can result in penalties, so it’s advisable to maintain a calendar with the main tax due dates. These include:

• April 15 (current year): First quarterly estimated tax payment

• June 15: Second quarterly estimated tax payment

• September 15: Third quarterly estimated tax payment

• January 15 (following year): Fourth quarterly estimated tax payment

• March 15: Business income tax filing for S-corporations and partnerships

• April 15: Individual and most sole proprietor tax returns due

Your tax return can be filed through the Internal Revenue Service (IRS) online system, or it can be filed manually.

You also need to be aware of any state and local filing requirements. To see a full breakdown of state-specific taxes, check out our free US State Explorer tool.

Alternatively, you can save yourself the time and headaches, and let Remote Payroll do it all for you. For US-based businesses, we not only file your payroll taxes with the local authorities; we can remit the payments on your behalf, too.

Learn more about how Remote Payroll can help. 

Common filing mistakes to avoid

For many small businesses, the filing process is often encumbered by the same mistakes. As a result, it’s important to avoid the following:

• Inaccurate record-keeping. Incomplete or inaccurate records are probably the most common cause of misfiled returns or missed deductions. Regular bookkeeping and payroll tracking — tasks made infinitely easier with automated payroll software — are essential to ensuring that your records are reliable.

• Missed tax deadlines. Missing a tax deadline not only leads to penalties but can also complicate future filings. Setting up digital reminders — or, more simply, working with a trusted partner — can help ensure you stay on top of quarterly and annual due dates.

• Overlooked deductions. Small business owners often miss out on valuable deductions, especially in categories like equipment, utilities, or travel.

How Remote can help

As mentioned, Remote Payroll is designed to simplify and optimize payroll and tax management for small US-based businesses. Specifically, we:

• File your payroll taxes with local authorities.

• Remit tax payments on your behalf.

• Automate payroll tax calculations, minimizing manual errors and ensuring that you’re always working with the most accurate numbers.

• Calculate all applicable federal, state, and local taxes, saving you time and resources.

• Ensure your payroll tax records are constantly up to date, in real-time.

• Provide in-house, expert support across all states.

• Enable you to track and manage all your payroll tax and employee information in one place.

Instead of tracking multiple spreadsheets and invoices, worrying about deadlines and filing procedures, and staying on top of multiple payroll tax laws, you can focus on growing your business.

To see how we can make your entire tax filing process quicker and easier, speak to one of our friendly experts today.

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