Running a small business often means dealing with more tax forms than you ever encountered as an individual taxpayer. The forms you need depend on how your business is structured, whether you have employees or contractors, the type of income and expenses you have, and whether your business uses retirement plans or other specialized arrangements.
There is no single list that applies to every business. A sole proprietor, partnership, S corporation, C corporation, and employer can all have very different filing obligations.
This guide covers some of the most common federal tax forms that small business owners may encounter.
Important: Not every business needs every form listed below. Your filing requirements depend on your specific circumstances.
Tax Forms to Consider When Starting a Business
Before filing your first business tax return, you may encounter several forms related to establishing your business and choosing how it will be taxed.
Form SS-4 — Application for Employer Identification Number
Form SS-4 is used to apply for an Employer Identification Number (EIN).
An EIN is a federal tax identification number used by many businesses, including corporations, partnerships, and businesses with employees. Some sole proprietors may not need an EIN in every situation, although an EIN can still be useful or required depending on the business's activities.
The IRS recommends determining whether your business needs an EIN before applying.
Form 2553 — Election by a Small Business Corporation
Eligible corporations and certain other entities can use Form 2553 to elect S corporation status.
The election has specific eligibility requirements and filing deadlines. Businesses considering an S corporation election should review the IRS rules carefully because an incorrect or late election can affect the business's tax treatment.
Form 8832 — Entity Classification Election
Certain eligible business entities, including some LLCs, can use Form 8832 to elect how they will be classified for federal tax purposes.
An LLC may have a default federal tax classification, but an eligible entity can sometimes elect a different classification by filing Form 8832.
Tax Forms for Businesses With Employees or Contractors
Hiring workers creates additional reporting and payroll responsibilities.
Form W-2 — Wage and Tax Statement
Employers generally use Form W-2 to report wages paid to employees and the federal, state, and other taxes withheld from those wages.
The employee receives a copy, and the information is also reported to the Social Security Administration and tax authorities as required.
Form W-3 — Transmittal of Wage and Tax Statements
Form W-3 summarizes the information reported on Forms W-2 when paper W-2 filing requirements apply.
Electronic filing rules may apply to employers depending on the number of information returns they file, so businesses should review the current IRS requirements before deciding how to submit their forms.
Form 1099-NEC — Nonemployee Compensation
Businesses generally use Form 1099-NEC to report qualifying payments for services provided by independent contractors and other nonemployees.
The reporting threshold and filing requirements should be checked for the applicable tax year. Businesses should also correctly determine whether a worker is an employee or an independent contractor before deciding which reporting form to use.
Form 940 — Employer's Annual Federal Unemployment (FUTA) Tax Return
Form 940 is used by employers to report federal unemployment tax under the Federal Unemployment Tax Act (FUTA).
FUTA is generally an employer-paid tax rather than a tax withheld from an employee's paycheck. Whether an employer is subject to FUTA depends on its payroll circumstances.
Form 941 — Employer's Quarterly Federal Tax Return
Many employers use Form 941 to report federal income tax withheld from employee wages and Social Security and Medicare taxes.
The form is generally filed quarterly unless the employer is eligible for a different filing requirement.
Form 944 — Employer's Annual Federal Tax Return
Some very small employers may be required by the IRS to file Form 944 annually instead of filing Form 941 quarterly.
This is not simply an optional replacement for Form 941. Employers should follow the IRS instructions or notification concerning whether they qualify to file Form 944.
Form 945 — Annual Return of Withheld Federal Income Tax
Form 945 is generally used to report federal income tax withheld from certain payments other than wages.
Depending on the circumstances, this can include withholding associated with pensions, annuities, IRAs, gambling winnings, and other nonpayroll payments.
Forms Used for Business Expenses and Deductions
Business owners may encounter additional forms when reporting deductions or specific types of expenses.
Form 4562 — Depreciation and Amortization
Businesses generally use Form 4562 to report depreciation and certain other deductions related to business property.
This can apply to assets such as equipment, machinery, furniture, vehicles, and other qualifying property.
The correct treatment depends on the type of property, how it is used, when it was placed in service, and the applicable tax rules.
Form 8829 — Expenses for Business Use of Your Home
Certain self-employed taxpayers who qualify for the home-office deduction may use Form 8829 to calculate allowable expenses for business use of their home.
However, not every taxpayer who works from home qualifies for the deduction. Eligibility depends on specific IRS requirements.
Form 2848 — Power of Attorney and Declaration of Representative
Form 2848 is not a business-expense form. Instead, it is used to authorize an eligible individual to represent a taxpayer before the IRS for specified tax matters.
This can be useful when a taxpayer wants a qualified tax professional to communicate with the IRS on their behalf.
Business Income Tax Return Forms
Your business structure is one of the biggest factors determining which federal income tax return you may need to file.
Form 1040 and Schedule C
Sole proprietors generally report business income and expenses on Schedule C (Form 1040), Profit or Loss From Business.
The net profit or loss from the business generally flows to the owner's individual federal income tax return.
Depending on the taxpayer's circumstances, Schedule SE may also be required to calculate self-employment tax.
Form 1065 — U.S. Return of Partnership Income
Partnerships generally use Form 1065 to report business income, gains, losses, deductions, and credits.
A partnership generally does not pay federal income tax at the entity level on its ordinary business income. Instead, tax items are generally passed through to the partners and reported using Schedule K-1.
Form 1120-S — U.S. Income Tax Return for an S Corporation
An S corporation generally uses Form 1120-S to report its income, deductions, gains, losses, and credits.
The corporation generally passes applicable tax items through to shareholders, who receive Schedule K-1 information for their individual returns.
Form 1120 — U.S. Corporation Income Tax Return
C corporations generally use Form 1120 to report their federal income, deductions, credits, and tax liability.
Unlike many pass-through entities, a C corporation generally pays federal income tax at the corporate level.
Estimated Tax and Other General Forms
Small business owners may also encounter forms related to estimated taxes, filing extensions, address changes, and potential penalties.
Form 1040-ES — Estimated Tax for Individuals
Self-employed individuals and other taxpayers who do not have enough tax withheld during the year may need to make estimated tax payments.
Form 1040-ES provides worksheets and payment information used by individuals to calculate and pay estimated federal income taxes, which may include taxes associated with business income and self-employment.
Form 7004 — Automatic Extension of Time to File Certain Business Income Tax Returns
Form 7004 can generally be used to request an automatic extension of time to file certain business income tax returns.
An extension to file generally does not mean an extension to pay. Businesses should estimate and pay taxes by the original payment deadline when required.
Form 8822-B — Change of Address or Responsible Party
Businesses can use Form 8822-B to notify the IRS about certain changes involving a business mailing address, location, or responsible party.
Keeping IRS records current can help prevent important correspondence from being sent to the wrong location.
Form 2210 — Underpayment of Estimated Tax by Individuals, Estates, and Trusts
Form 2210 is generally used by individuals, estates, and trusts to determine whether an estimated tax underpayment penalty applies and, when necessary, calculate the penalty.
Business owners may encounter this form because income from a pass-through business can affect their individual estimated tax obligations.
Form 2220 — Underpayment of Estimated Tax by Corporations
Corporations may use Form 2220 to determine whether they are subject to a penalty for underpayment of estimated tax and to calculate the applicable penalty.
The form can apply to corporations and certain tax-exempt organizations in specific circumstances.
Retirement-Related Tax Forms
Business owners who establish or participate in retirement arrangements may encounter additional IRS forms.
Form 5500 Series
The Form 5500 series is used for annual reporting and disclosure requirements associated with many employee benefit plans, including certain retirement plans.
The filing requirements can depend on the type of plan, its size, and other circumstances.
Form 5329 — Additional Taxes on Qualified Plans and Other Tax-Favored Accounts
Form 5329 is used to report certain additional taxes related to retirement plans and other tax-favored accounts.
Depending on the taxpayer's situation, it can involve additional taxes related to IRAs, qualified retirement plans, Coverdell ESAs, HSAs, and other accounts.
Form 8606 — Nondeductible IRAs
The original source incorrectly identified Form 8806 for several IRA-related reporting situations.
Form 8606 is generally the relevant form for reporting nondeductible contributions to traditional IRAs. It can also be required for certain traditional IRA distributions when the taxpayer has basis from nondeductible contributions and for certain Roth IRA conversions and distributions.
This distinction is important because using the wrong form can lead to incorrect reporting of retirement transactions.
The Right Tax Forms Depend on Your Business
There is no universal small business tax-form checklist. The forms you need depend on factors such as:
- Your business structure
- Whether you have employees
- Whether you hire independent contractors
- Your business activities
- Your assets and equipment
- Whether you operate from a home office
- Whether you make estimated tax payments
- Whether you have a retirement plan
- Whether you operate in multiple states
- The types of transactions your business completes
Some forms are filed annually, while others may be quarterly or event-specific.
The most important step is not simply knowing the names of the forms. It's understanding which forms apply to your business, when they are due, and what information must be reported on each one.
For small business owners who are unsure about their filing responsibilities, working with a qualified tax professional can help create a more organized process and reduce the risk of missed forms, incorrect reporting, and avoidable penalties.
ContNow Tax Preparation LLC provides tax preparation, bookkeeping, and accounting support for small businesses and can help business owners organize their financial records and understand their federal tax filing needs.
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