Blog · Taxes · October 18, 2026

Small Business Tax Preparation: What Every Owner Needs to Know

Running a business means wearing a lot of hats. Salesperson, customer service, marketing, and somewhere in there, "person who has to deal with taxes." If small business tax preparation is the hat you dread most, you're in good company.

The good news: business taxes get a whole lot less scary once you know three things. Which form your business files, when it's due, and what records you need. Let's walk through all three in plain English.

Step 1: Know Which Tax Return Your Business Files

Your business structure decides your tax form. This is the part that trips up many new owners, especially folks who formed an LLC and assumed it changed everything.

A single-member LLC is treated as a "disregarded entity" by default, which means for federal income tax purposes, you still file a Schedule C. The LLC protects you legally; it doesn't automatically change your taxes.

Step 2: Put the Deadlines on Your Calendar

For calendar-year businesses, the general rule for individual returns (including Schedule C) is the 15th day of the fourth month after year-end, which makes it April 15, 2027 for your 2026 return. Partnerships and S corporations generally file by the 15th day of the third month (mid-March).

Other dates owners forget:

• January 31: Forms 1099-NEC to contractors you paid, and W-2s to employees
• Quarterly: Estimated tax payments for owners (April 15, June 15, Sept. 15, and Jan. 15 of the following year)
• Quarterly: Form 941 payroll returns if you have employees

Need more time to file? An extension gives you more time to file, not more time to pay. Interest and penalties can still apply to tax that's paid late.

Step 3: Gather the Right Records

Your preparer can only work with what you hand over. Here's a small business tax prep checklist:

Income records

• Forms 1099-NEC, 1099-MISC, and 1099-K you received
• Bank and merchant statements (Square, Stripe, PayPal, Cash App for Business, etc.)
• Cash sales records

Expense records

• Receipts or a bookkeeping report (profit and loss statement)
• Mileage log for business driving
• Home office square footage and household expenses, if you use part of your home regularly and exclusively for business
• Business insurance, phone, internet, software, and supplies
• Contractor payments, plus W-9s from each contractor

Other

• Equipment or vehicle purchases (date, cost, and business-use percentage)
• Payroll reports if you have employees
• Estimated tax payments you made
• Last year's business and personal returns

Tip from the GOAT: Open a separate business checking account if you haven't already. Mixing personal and business money is the number-one reason a "quick" business return turns into a long one.

Deductions Small Business Owners Should Know About

Every business deduction has to be ordinary and necessary for your type of business. Common ones include:

• Vehicle expenses. Use actual costs or the IRS standard mileage rate. For 2026, the business rate is 72.5 cents per mile for January 1 to June 30 and 76 cents per mile for July 1 to December 31, so your log needs dates.
• Home office. If you qualify, using the simplified or regular method.
• Equipment and depreciation. Computers, tools, furniture, and machinery.
• Health insurance premiums. Many self-employed owners can deduct premiums for themselves and their families.
• Retirement contributions. SEP IRAs, SIMPLE IRAs, and solo 401(k)s can lower your taxable income.
• The qualified business income (QBI) deduction. Many sole proprietors, partners, and S corporation owners may deduct up to 20% of qualified business income. Starting with tax years after 2025, there's also a new minimum deduction for active qualified business income. Income limits and business-type rules apply.

New for 2026: Higher 1099-NEC Threshold

If you pay contractors, here's a change worth knowing. For payments made in 2026, the Form 1099-NEC reporting threshold is $2,000 (up from $600 for payments made before 2026). And for payment apps and online marketplaces, Form 1099-K reporting is back to the old threshold of more than $20,000 and more than 200 transactions.

Important: those are reporting thresholds. All business income is taxable, whether you get a 1099 or not.

How to Compare Small Business Tax Preparation Quotes

Business return prices vary a lot because businesses vary a lot. When you compare, ask every preparer to quote the same list:

1. The federal return for your business type
2. Your Georgia return(s)
3. An extension, if you might need one
4. Estimated tax calculations for next year
5. A planning conversation
6. What's billed separately: notice responses, amended returns, bookkeeping cleanup

The biggest factor in your price is usually the shape of your books. Clean, reconciled records cost less to work with than a shoebox of receipts.

DIY Software vs. a Tax Professional

Software can work for very simple businesses. But consider a professional if:

• You're switching structures (say, to an S corp)
• You hired your first employee
• You bought a vehicle or big equipment
• You're behind on filing or got an IRS notice
• You want to plan for next year, not just report last year

That last one is the real difference. Software tells you what you owe. A good tax professional helps you owe less next time, legally.

Common Small Business Tax Mistakes I See

• Mixing personal and business money. It makes deductions harder to prove and your return slower (and pricier) to prepare.
• Forgetting about self-employment tax. Sole proprietors and single-member LLC owners owe Social Security and Medicare tax on net profit, on top of income tax.
• Skipping estimated payments. Then April brings a big bill and a penalty.
• No mileage log. "About 10,000 miles" won't hold up. Dates, miles, and purpose will.
• Not sending 1099s to contractors. If you paid an individual contractor $2,000 or more for services in 2026, you'll generally need to file and furnish a 1099-NEC by January 31.
• Choosing an S corp just because someone on the internet said so. It can save tax for some owners, but it adds payroll, a separate return, and reasonable-salary rules. Run the numbers first.
• Waiting until April. The best tax savings happen during the year, not after it's over.

Frequently Asked Questions

Do I need to file a business tax return if my business lost money?

Yes, in most cases. Sole proprietors report losses on Schedule C, and a loss can often offset other income (some limits apply). Partnerships and corporations generally must file even with no profit.

Does an LLC file a separate tax return?

A single-member LLC usually reports on Schedule C with your personal return. A multi-member LLC usually files Form 1065. An LLC that elected S corporation status files Form 1120-S.

What records do I need for small business tax preparation?

Income records (1099s, bank and merchant statements), expense receipts or a profit and loss statement, a mileage log, asset purchases, payroll reports, estimated payments, and last year's return.

How much does small business tax preparation cost?

It depends on your entity type, number of owners, states, and the condition of your books. A Schedule C usually costs less than a partnership or S corporation return. Ask for a written quote.

Should I make estimated tax payments for my business?

Generally, yes, if you expect to owe $1,000 or more in tax when you file. Payments for 2026 were due April 15, June 15, and September 15, 2026, with the last one due January 15, 2027.

Let's Get Your Business Taxes Off Your Plate

You built your business. Let me handle the paperwork so you can get back to running it. Book a small business tax appointment at virginiaharrisenterprise.com or call 770-375-0353.

Notes & Sources

• Forms by entity and due dates: IRS Publication 334 (2025), Table 1-2; IRS Publication 509 (2026), Tax Calendars.
• 2026 mileage rates: IRS Standard Mileage Rates page (IR-2025-128 for Jan.–June; IR-2026-29 for July–Dec.), reviewed July 28, 2026.
• QBI deduction and post-2025 minimum deduction: IRS "Qualified business income deduction" (irs.gov/newsroom/qualified-business-income-deduction), updated Sept. 22, 2026.
• 1099-NEC $2,000 threshold for 2026 payments: IRS "Am I required to file a Form 1099 or other information return?"; 1099-K threshold: IRS IR-2025-107.
• Estimated tax dates: 2026 Form 1040-ES.