Before filling out any tax forms, you should have all of your records in front of you that report your business earnings and expenses. TurboTax has two products to serve business owners- TurboTax Home & Business is designed for sole proprietors and 1099 contractors, while TurboTax Business helps you prepare taxes for corporations, partnerships and LLCs. Regardless of the form you use, you generally calculate your taxable business income in similar ways. When it’s time to file a federal income tax return for your small business, there are various ways you can do it, depending on whether you run the business as a sole proprietorship or use a legal entity such as an LLC or corporation.ĭifferent types of business entities can require a different set of tax forms for reporting your business income and expenses. If you run your business as a corporation, or decide to treat your LLC as one, then you need to prepare a separate corporate tax return on Form 1120 or Form 1120S if you are an S-Corp, or Form 1065 for a partnership and/or multi-member LLC.If you run your business as a sole proprietorship, or as an LLC and you are the sole owner, you can report your business income and expenses on Schedule C along with your personal income tax return.Before filling out any tax form to report your business income, gather all your records-paper or electronic-that pertain to your business earnings and expenses.

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