Business tax preparation

The right business return depends on how the business is organized and how it is treated for federal tax purposes. AD Accounting prepares business tax returns and works from your bookkeeping records so the numbers on the return tie back to your books.

If your records are incomplete, our bookkeeping service can bring them up to date before the return is prepared.

• Owners of corporations, S corporations and partnerships
• LLC owners who need to confirm how the LLC is taxed and which return applies
• Sole proprietors who report business income and expenses on their personal return
• New business owners setting up their first set of tax filings
• Businesses with employees or sales tax responsibilities that affect the year-end picture

Choosing or confirming tax treatment

How a business is taxed is a separate question from how it is formed under state law. We can help you understand the treatment that applies to you.

Year-end records that are not ready

Unreconciled accounts, missing categories or mixed personal and business spending make a return harder to prepare accurately.

More than one owner

Partnerships and multi-owner entities involve allocations and owner-level reporting that need careful handling.

Growing or changing operations

Hiring, adding states or changing entity type can bring new filing requirements.

1. Confirm how the business is taxed

   We begin with the structure and federal tax classification of the business, because that determines the return.

2. Review your books

   We look at your financial records for completeness and consistency with the filing period.

3. Prepare the return

   The business return is prepared, and any owner-level information is carried to the owners’ own filings where applicable.

4. Review and file

   You review the return with us before it is filed.

A C corporation generally files its own corporate income tax return. An S corporation is a corporation that has elected special tax treatment and generally files an informational return, with income passed through to its shareholders. A partnership generally files an informational return with income passed through to its partners.

An LLC is a legal form, not a single federal tax category. Unless it elects corporate classification, a single-member LLC is generally disregarded as separate from its owner for federal income tax purposes. It is generally treated as a separate entity for employment taxes and certain excise taxes. A multi-member LLC is generally treated as a partnership unless it elects corporate classification. State-law formation does not by itself determine the LLC’s federal income tax classification, so we confirm the applicable treatment before preparing anything.

Single-member limited liability companies (IRS)

Federal tax classification does not settle every state requirement. State income, franchise and other filings vary, and we discuss which ones relate to your business.