Here’s How You Can Get Ready for Tax Season this Year
Filing taxes is an exercise almost all Americans go through in the first part of each year, but those tax filings can differ based on a number of factors, including income level, location, and employment status.
Some tax tips are universal to all filers, while other advice may be specific to those who operate small businesses or work for themselves. Self-employed filers have certain distinct tax considerations, and general advice may not always apply to those who work independently or employ others. Changes to the tax code—especially with a shift in presidential administrations—could also affect tax obligations and may have a different impact on self-employed individuals.
If you’re a small business owner or otherwise self-employed, here are some things you should keep in mind to help you get through this tax season:
Gather Your Documents
Have a detailed log on hand of the money coming into and going out of your business. Even if you have an electronic system in place, items like sales slips, bills, invoices, receipts, and canceled checks are key supporting documents for calculating and validating your tax filings. Organize these records and keep them in a safe place.
If your business employs others, keep track of your payroll records, including documents showing wages, benefits, and withholdings.
Tailor Taxes to Your Business Structure
Your tax filing obligations depend on the type of business you’re running. If you’re self-employed, you might be considered a sole proprietorship, meaning you own and operate your unincorporated business as an individual or a married couple.
Sole proprietors generally report business income and losses on their personal U.S. federal income tax return using Schedule C, but you could have other taxes and filing requirements, such as those related to self-employment earnings.
Other business structures include Limited Liability Companies (LLCs), Limited Partnerships (LPs), C Corporations, and S Corporations. Get familiar with the specific tax requirements for your business structure.
Don’t Forget State Taxes
If you reside in a state that imposes income tax, calculate your state tax liability using the process applicable to that state. Tax rules may vary, and some states offer their own tax credits and deductions for businesses.
Meet Your Deadlines
The deadline for filing federal individual income tax returns in 2025 is Tuesday, April 15. If you need more time, you can generally file for an extension, pushing the deadline to October 15.
This extension applies only to the filing of the return—you must still pay any taxes owed by April 15. State income tax deadlines can vary; many align with the federal deadline, but check with your state’s tax agency to confirm your specific due date.
Ask the Experts
Speaking with a tax professional can help you determine smart strategies for your business and ensure you remain compliant. Consult a tax expert before making decisions about how to structure or strategize your business finances.
Keep Up with Tax Changes
As we enter a new presidential administration in 2025, any tax code changes enacted this year would likely go into effect next tax season at the earliest. Of note: many provisions of the Tax Cuts and Jobs Act (passed in 2017) are currently set to expire at the end of 2025.
That expiration—or any new changes—may impact your 2026 taxes when you file in 2027.
The Bottom Line
Staying on top of your taxes can be one of the most time-consuming tasks for a business owner. Consider working with an accountant or tax professional who can guide you through the specific requirements for your business and help you respond to changes in tax laws, rules, or regulations.
Now might be the perfect time to grab those IRS forms, organize your invoices and receipts, and consult with an expert—so you can tackle tax day like a pro.
