Tax for Suppliers to National Retailers
Why Tax Preparation Is Complicated for Suppliers to National Retailers?
When it’s time to file a federal income tax return for your Supplier to National Retailers business, there are a variety of IRS forms for Federal Tax Return and State Tax Return form to file your annual Business Tax Return , depending on whether you run the business as a sole proprietorship, or Partnership or use a separate legal entity such as a LLC or S or C Corporation.
Choice of Entity for Suppliers to National Retailers services
Spry Associates prepares appropriate Annual Tax Return for your types of business entities for mandatory Federal and/or State Tax Return filing reporting your business revenue, allowances and returns, cost of services, gross profit, selling, general and financial expenses to derive your net income and deduct all expenses with your periodic revenue to arrive at your taxable income and tax obligations to IRS and FTB. Regardless of the form you use, we prepare your Tax Returns to calculate your taxable business income with all deductible costs md expenses in compliance with Federal Tax and State Tax regulations.
Rarely Suppliers to National Retailers business use a sole proprietorship form which allows them to report all of their business income and expenses on a Schedule C attachment to their personal income tax return. If you run the business as an LLC and you are the sole owner, the IRS also considers you to be a sole proprietorship that also uses the Schedule C attachment. However, if your business is organized as a S or C Corporation or you elect to treat your LLC as one, then we will prepare a separate corporate tax return using Form 1120 for C-Corporations or Form 1120S for S-Corporations. Multi-member LLCs are considered partnerships and typically file Form 1065.
The income of S Corporation or Multi-member LLC is passed through to your Personal Tax Return to avoid double taxation. A Corporation or Limited Liability Company (LLC) separates your liability for your practice from your individual liability to afford protection of your assets but you have to keep more detailed and segregated records for which we offer bookkeeping services .
Spry Associates Services for Suppliers to National Retailer Businesses
Remember, you have Capital Assets, and sizeable investment in inventory in your business, for you to take accelerated Depreciation Expenses to pay lower taxes in your earlier period of operation or Capitalize part of your Repairs extending the life of your warehouse or machinery in compliance to IRS and FTB regulations and rules.
EDI Data for Business Transactions
In addition, your customers, National Retailers, or their Logistics, Warehouses and/or transportation companies have bigger and more varied technical resources including those in EDI transactions that you may not have and as such you way too much restricted access to vast amount of EDI data available to you through your Enterprise Resource Planning (ERP) system that Spry Associates. CPA, because of our competence we can extend it to meet your business requirements.
Remember Tax Return Filing Deadlines
Be aware of different filing deadlines. When you use a Schedule C, it becomes part of your Form 1040 and therefore, no separate filing deadlines apply. It is generally subject to the same April 15 deadline.
If you are taxed as a C-Corp, you need to file a Form 1120, you must file it by the 15th day of the fourth month following the close of the tax year, which for most taxpayers is April 15 or the next business day if it falls on a weekend or holiday. If you are taxed as an S-Corp or as a partnership, you need to file a Form 1120S or Form 1065. These forms are due by the 15th day of the third month following the close of the tax year, which for most taxpayers is March 15. You cannot send this form to the IRS with your personal income tax return.
If you are taxed as a C-Corp, you need to file a Form 1120, you must file it by the 15th day of the fourth month following the close of the tax year, which for most taxpayers is April 15 or the next business day if it falls on a weekend or holiday. If you are taxed as an S-Corp or as a partnership, you need to file a Form 1120S or Form 1065. These forms are due by the 15th day of the third month following the close of the tax year, which for most taxpayers is March 15. You cannot send this form to the IRS with your personal income tax return.
Disclaimer: This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Spry Associates, CPA assumes no liability for actions taken in reliance upon the information contained herein.