Which Business Tax Return Do You Need to File?

Not all businesses file the same tax return. The form you use depends on how your business is legally structured. Here's a breakdown of the most common business tax forms.

Form: Schedule C (attached to your personal Form 1040)

If you're a sole proprietor — running a business in your own name without a separate legal entity — you report business income and expenses on Schedule C. The net profit flows to your personal return and is subject to self-employment tax.

Form: Schedule C (by default) or Form 1120-S (if S-Corp election made)

A single-member LLC is a "disregarded entity" by default — it files the same as a sole proprietor. If you've elected S-Corp status, you file Form 1120-S instead.

Form: Form 1065 (Partnership Return)

Multi-member LLCs are treated as partnerships by default. The partnership files Form 1065, and each partner receives a Schedule K-1 showing their share of income, deductions, and credits to report on their personal return.

Form: Form 1120-S

S-Corps file Form 1120-S, which reports the corporation's income, deductions, and credits. Each shareholder receives a K-1. The corporation itself doesn't pay federal income tax — income passes through to shareholders.

Form: Form 1120

C-Corps file Form 1120 and pay corporate income tax at the entity level (currently 21%). Dividends paid to shareholders are taxed again on personal returns — the "double taxation" issue that makes C-Corps less common for small businesses.

Form: Form 990

Tax-exempt organizations file Form 990 to report their finances and activities to the IRS.

Not sure which return you need to file — or need help filing it? The Gap ProAdvisors prepares business tax returns for all entity types. Contact us or pay for your tax prep online.