Nine Things to do BEFORE you File your Small Business Taxes

2024 Update for Small Business Taxes

Be sure to complete this list before you file your 2023 small business taxes in 2024.

Scroll down to watch my video.

1.     Income Checkup – If you are going to owe over $1000 at the end of the year (federal or state), make an estimated payment by January 15^th. The IRS paycheck checkup tool can help.

2.     1099s – Get contract workers’ information and total what you paid them. 1099s are due to the government AND your workers by January 31. Use IRS form W9 to request your workers info.  Bonus: Super easy place to file online for cheap (based in Fayetteville, AR): https://www.tax1099.com/1099-forms/efile-form-1099-NEC

3.     Inventory – If you sell products (including food and beverage), take a physical inventory of the items you sell AND the materials you use to make the products you sell. How to take inventory and Free Worksheet Download!

4.     Calculate your mileage – Figure out your business mileage for the year if you use a regular car or truck for business. Every mile is worth 65.5 cents. You must document your business purpose and your mileage.
Here is a blog I wrote on mileage and vehicles. https://grassrootstaxes.com/deduct-my-car/

5.     Bookkeeping – Take an honest look at your recordkeeping. If you have nothing added up and hate doing paperwork, get help. Do what you do best; get help with the rest. Check out our business deductions checklist and blog so you don’t miss any deductions.

6.     Franchise Tax / Annual Reports – This one is easy. If you have an LLC, corporation, or Nonprofit, go to the Secretary of State website for your state and search for your business. Be sure you are in ‘good standing’. If not, you probably need to pay your franchise tax or file an annual report before the end of the year.

7.     Labor posters – if you have employees. update your labor posters. You do not have to buy them. Lots of people try to sell them to you in the mail. You can download and print from your state’s Department of Labor website.

8.     Annual Meeting – If you are an LLC, corporation, or nonprofit, be sure to have an annual meeting, even if you are a single-member LLC and have only yourself to meet with. Re-elect all your officers according to your operating agreement, approve the notes from the last meeting and any changes like changing banks or taking out a loan. Keep all your notes (meeting minutes) in your corporate book. How to Have an Annual Meeting and Why – Blog Post and Free download!

9.     *New for 2023* 1099K forms – even though the IRS changed the rules <cite> and many 1099K forms will not be issued, you still need to look at all your apps <cite> to see if they are sending one anyway.
If you had over $20,000 transactions with an app, you will get a 1099K. Paper forms will most likely NOT come in the mail, but will be in your app.
If you get a 1099K and it is possible that some transactions are not business, you will need to download your transaction history with the app and mark everything that is not business. Everything needs to be reported, especially if it is non-taxable income.

https://youtu.be/CTODLe3dWDk?si=a-KkWgmVA6KMFIho