Small Business Tax Basics

Summary

This practice note provides an overview of small business tax in general, and how small businesses report income or losses on forms and schedules, including Schedule C of IRS Form 1040 (Schedule C), Form 1065, Form 1120S (S corporations), and Form 1120 (C corporations). This note analyzes how your small business client should report items such as types of small businesses, tax advantages and disadvantages for particular entities, accounting periods, book versus tax income, estimated tax, self-employment tax, employment tax, and how to file.