Tag Archives: C-corporations

Understanding the tax responsibilities that come with starting a business

Small business owners have a variety of tax responsibilities. The IRS knows that understanding and meeting tax obligations is vital to the success of all businesses, especially a new one. IRS.gov has the resources and information to help people through the process of starting a new business.

Here are some tips for new entrepreneurs:

Choose a business structure.
The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are:

  • Sole proprietorship: An unincorporated business owned by an individual. There’s no distinction between the taxpayer and their business.
  • Partnership: An unincorporated business with ownership shared between two or more people.
  • Corporation: Also known as a C corporation. It’s a separate entity owned by shareholders.
  • S Corporation: A corporation that elects to pass corporate income, losses, deductions and credits through to the shareholders.
  • Limited Liability Company: A business structure allowed by state statute.

Federal Excise Tax eFiling

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E-File IRS Form 7004 For an Extension on Corporate Income Taxes

Most of the corporate tax payers do not find time to file their tax returns within the deadline stated by IRS. They may own a small or large organization but; they cannot stay away from filing their tax returns.   Being busy all the time, most corporate business owners forget about filing tax returns on time. Such business tax payers can request for an extension of time to file taxes to IRS. Continue reading