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Use this small business tax prep checklist to prepare your records, identify deductions, and file required tax forms accurately and on time.
WRITTEN & RESEARCHED BY
Editor & Senior Staff Writer
Last updated onUpdated
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Expert Contributor
Filing small business taxes is easier when you have a clear plan. Merchant Maverick’s small business tax checklist helps you get organized and avoid missing key steps before you file.
This guide walks through how to prepare your accounting software, which financial reports you’ll need, and key filing considerations. We’ve also included a downloadable tax checklist to help you stay organized throughout tax season.
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Preparing small business taxes doesn’t have to be complicated. We’ve broken the process into six clear steps to help you get organized and ready to file. Following these steps and using our free small business tax preparation checklist can help you stay on track throughout tax season.
Before you start filing, gather the basic information needed to complete your business tax forms or provide to your accountant. Having accurate information ready helps prevent filing delays and IRS processing issues.
The tax forms your business needs to file depend on how it’s structured. Use the table below to identify the most common federal tax forms by business type.
| Business Type | Required Tax Forms |
|---|---|
| Sole Proprietorship |
|
| Partnerships |
|
| C Corporations |
|
| S Corporations |
|
| Limited Liability Companies (LLCs) |
|
Note: Not all businesses will need every form listed above. Employer-related forms generally apply only if you have employees.
Knowing which forms apply to your business helps you avoid missed filings and unnecessary delays. If you work with an accountant, having this information prepared ahead of time can also reduce preparation time and costs.
Deadlines vary by form and business type. While some filings align with standard tax deadlines, others — such as returns for S corporations and partnerships — have earlier due dates. Be sure to confirm filing deadlines for each required form.
Accurate income and expense records are essential for preparing your business taxes. Accounting software helps you track transactions throughout the year, automatically categorize income and expenses, and store receipts and supporting documentation for tax filing.
If you’re not currently using accounting software, choosing a system now can make future tax preparation faster and more accurate.
Before filing your business taxes, make sure your key financial reports are up to date.
If you’ve been using accounting software consistently, generating these reports should be quick and straightforward. Having them ready can also speed up the filing process and reduce back-and-forth with your accountant.
| Report | Why It Matters |
|---|---|
| Balance Sheet | Shows your business’s assets, liabilities, and equity at year-end |
| Profit & Loss Statement | Summarizes income and expenses for the tax year |
| Income Report | Details all sources of business revenue |
| Expense Report | Breaks down deductible business expenses |
| Inventory Valuation | Calculates the value of inventory on hand |
| Cost of Goods Sold (COGS) | Determines direct costs tied to products sold |
| Sales Tax Summary | Tracks collected and remitted sales tax |
| Payroll Summary | Reports wages, taxes withheld, and employer contributions |
| Mileage Log | Documents business-related vehicle use |
| Asset Depreciation Log | Tracks depreciable assets and annual depreciation |
After filing, retain these records in case of an IRS audit. In most situations, records should be kept for at least three years, though some audits can go back up to six years or longer depending on circumstances.
When it comes to tax records, longer retention is generally safer.
Claiming business deductions can reduce your taxable income and lower your overall tax liability.
Tracking deductions throughout the year makes tax filing easier. But even if you didn’t track everything consistently, it’s still important to review common deductions and apply any that are relevant to your business in the future.
The following deductions may apply, depending on your business activities and structure:
| Deduction Type | Examples |
|---|---|
| Qualified Business Income (QBI) | Pass-through income deduction, if applicable |
| Workspace Costs | Home office expenses or commercial rent |
| Marketing & Advertising | Online ads, print ads, promotional materials |
| Vehicle Expenses | Actual vehicle expenses or business mileage |
| Operating Expenses | Supplies, business software, utilities |
| Employee Costs | Payroll, benefits, and other employee-related expenses |
| Insurance | Business insurance premiums |
| Travel | Business-related travel expenses |
Keep receipts, invoices, and supporting records for all deductions you claim. Proper documentation is essential if your return is ever reviewed or audited by the IRS.
Once your records and reports are ready, file your required business tax forms by the applicable deadlines. If you’re filing on your own, use your accounting software and available tax resources to ensure your information is complete and accurate.
Many accounting software platforms offer built-in tax tools or integrations that can help streamline the filing process and reduce errors.
Preparing ahead of time makes filing your small business taxes faster and less disruptive. Having your records, reports, and forms ready allows you to file accurately and focus on running your business instead of scrambling at the deadline.
If you still have questions, explore Merchant Maverick’s small business tax resources, including our small business tax guide and our self-employment tax guide,
Once you’re ready, download our small business tax preparation checklist to confirm you have everything you (or your accountant) need to file efficiently.
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