So, you’ve just typed “tax checklist” into Google, and suddenly you feel that familiar twinge of anxiety creeping in.

Yeah, we get it — the word “tax” has a way of making your heart race just a little faster, especially when you’re running a small business.

It’s natural to feel overwhelmed when you don’t have the budget for high-end professionals, and the idea of managing everything on your own can be daunting. 

But before you spiral into full-blown panic mode, take a deep breath — doola’s got you covered.

We understand the unique challenges small businesses face during tax season. That’s why we’ve created this simple, easy-to-digest, and very layman-friendly tax checklist for 2024. 

And just so you know,  we also offer free consultations to address any tax-related doubts or concerns you may have. Our team is here to guide you through every step of the process, ensuring that you feel fully supported and informed.

Don’t hesitate to book a session with us — your peace of mind is our priority.

For now, take your time to go through this checklist thoroughly. 

Let’s get started.

C Corporation Tax Checklist

A C Corporation (C Corp) is a legal entity separate from its owners, providing liability protection and a flexible structure for raising capital. 

Unlike S Corps, C Corps are taxed separately from their owners, leading to what’s often called “double taxation” — once at the corporate level and again on dividends distributed to shareholders.

❗Must-Have Basic Information for Tax Season

Legal Name of the Corporation: This should match the name registered with the state.

Employer Identification Number (EIN): The unique identifier issued by the IRS for tax purposes.

Incorporation Date: The date when the corporation was legally formed.

Business Address: The primary location of the corporation’s operations.

State of Incorporation: The state where the corporation is legally registered.

Corporate Bylaws: A document outlining how the corporation will be governed.

Shareholder Information: Details about each shareholder, including their percentage of ownership.

Board of Directors Information: Names and contact details of the board members.

Bank Account Information: Account details for the corporation’s financial transactions.

🏛️ What Kind of Government Forms Are Needed?

Form 1120: This is the U.S. Corporation Income Tax Return. It’s used to report income, gains, losses, deductions, and credits of your corporation. It must be filed by the 15th day of the fourth month after the end of your corporation’s fiscal year.

Form 1099-DIV: If your C Corp issues dividends, you’ll need to provide Form 1099-DIV to shareholders, showing the dividends paid throughout the year.

Form 941: For reporting quarterly payroll taxes, including federal income tax withholding, Social Security, and Medicare taxes.

Form 940: This is the Employer’s Annual Federal Unemployment (FUTA) Tax Return.

State Corporate Tax Forms: Depending on your state, there may be additional forms to file state corporate income taxes.

Related Read: A Complete Guide to IRS Tax Forms

💰 Financial Records You Should Keep Accessible

Income Statements: Reflect all your revenue and expenses. These should be detailed and cover the entire fiscal year.

Balance Sheets: Shows your corporation’s assets, liabilities, and shareholders’ equity as of the end of the fiscal year.

Cash Flow Statements: Provides a clear picture of your cash inflows and outflows over the year, essential for tax preparation and financial planning.

General Ledger: The backbone of your accounting system, detailing every transaction your business makes.

Now if you’re feeling overwhelmed or unsure about  any of this financial  information you need, don’t stress. doola has your back. We’ll help you understand everything in plain, simple terms. And if you’re missing any of these records, we’ll assist you in getting it sorted.

📦 Keep These Asset Records Close

Depreciation Schedules: Document the depreciation of physical assets (like equipment and buildings) over time. This affects your tax deductions.

Capital Asset Records: Track purchases, sales, or disposal of capital assets. You’ll need these to calculate any gains or losses.

Inventory Records: If your C Corp sells physical products, maintain accurate records of inventory on hand at the beginning and end of the year.

Lease Agreements: Include records of leased property or equipment, detailing the lease terms, payments made, and any relevant depreciation.

👨🏻‍💻 When a CPA Can Help?

Tax Planning: A CPA can help you develop strategies to minimize tax liability throughout the year, not just at tax time.

Tax Preparation: Ensures that all forms are filled out correctly, all deductions are claimed, and no potential liabilities are overlooked.

Compliance: Helps you navigate federal and state tax laws, which can be complex and ever-changing.

Audit Support: If the IRS audits your C Corp, a CPA can represent you, handle the paperwork, and communicate with auditors.

✅ Information to Share with Tax and Bookkeeping Advisors

Financial Statements: Provide them with your income statement, balance sheet, and cash flow statement.

General Ledger: This helps your advisors see the full picture of your financial transactions.

Payroll Records: Ensure your advisors have access to all payroll information, including Form W-2s, Form 941, and any state payroll tax filings.

Tax Forms from Previous Years: Sharing past tax returns can help identify trends or issues to address in the current year.

Asset and Depreciation Schedules: Give them the depreciation schedules and any details about new assets acquired or sold during the year.

Dividend Records: If dividends were issued, provide a record of all distributions made to shareholders.

Loan Agreements and Interest Payments: If your corporation has outstanding loans, share the agreements and records of interest payments for possible deductions.

Partnership Tax Checklist

A partnership is a business structure where two or more people share ownership. Each partner contributes to all aspects of the business, including money, property, labor, or skill, and shares in the profits and losses of the business.

❗Must-Have Basic Information for Tax Season

Legal Name of the Partnership: The registered name under which the partnership operates.

Employer Identification Number (EIN): The IRS-issued number for tax purposes.

Partnership Agreement: A legal document outlining the roles, responsibilities, profit-sharing, and decision-making processes among partners.

Names of Partners: Details of all partners, including contact information and their percentage of ownership.

Start Date of the Partnership: When the partnership was legally formed or began operations.

Business Address: The primary location where the partnership operates.

Bank Account Information: Details of the business bank accounts used for partnership transactions.

State of Registration: The state where the partnership is legally registered.

🏛️ What Kind of Government Forms Are Needed?

Form 1065: This is the U.S. Return of Partnership Income. It reports the partnership’s income, deductions, gains, losses, etc. It must be filed annually by the 15th day of the third month after the end of the partnership’s tax year.

Schedule K-1 (Form 1065): Each partner receives a Schedule K-1, which reports their share of the partnership’s income, deductions, and credits. Partners use this to report their income on their personal tax returns.

Form 941: If the partnership has employees, this form is used to report payroll taxes, including federal income tax withholding, Social Security, and Medicare taxes.

Form 940: This is for the Employer’s Annual Federal Unemployment (FUTA) Tax Return, if applicable.

State Tax Forms: Depending on your state, additional forms may be needed for state income or payroll taxes.

💰 Financial Records You Should Keep Accessible

Income Statements: Track all revenue and expenses for the partnership. These records help prepare Form 1065.

Balance Sheets: This shows the partnership’s financial position, including assets, liabilities, and partners’ equity.

Capital Accounts: Each partner has a capital account that tracks their investment in the partnership, their share of profits or losses, and any withdrawals made during the year.

Cash Flow Statements: Document the cash flowing in and out of the partnership. This is vital for both tax preparation and managing the business’s finances.

Simplify your books and taxes: 6 Accounting Tips to Make Your Wallet (and Brain) Happy

📦 Keep These Asset Records Close

Depreciation Schedules: Keep track of how assets (like equipment or real estate) depreciate over time. This impacts your deductions.

Inventory Records: If your partnership deals with physical goods, maintain up-to-date inventory records.

Capital Assets: Record any major purchases or sales of assets, as these may result in gains or losses that need to be reported on the tax return.

👨🏻‍💻 When a CPA Can Help?

Partnership Agreement: A CPA can help draft or review your partnership agreement to ensure that income, deductions, and credits are allocated according to the partners’ intentions.

Tax Planning: A CPA can provide strategies for managing income, expenses, and deductions to minimize tax liability for the partnership and its partners.

Tax Return Preparation: Ensures that Form 1065 and Schedule K-1s are correctly completed and filed, avoiding errors that could lead to penalties or audits.

Audit Representation: If the partnership is audited by the IRS, a CPA can handle all communications and represent the partnership during the audit process.

✅ Information to Share with Tax and Bookkeeping Advisors

Financial Statements: Share the partnership’s income statement, balance sheet, and cash flow statement for the year.

General Ledger: Provide access to the general ledger, which details every financial transaction.

Partnership Agreement: Give them a copy of the partnership agreement, outlining how profits, losses, and other financial matters are handled.

Payroll Records: If applicable, share all payroll records, including details of employee salaries, benefits, and payroll taxes paid.

Capital Accounts: Provide details of each partner’s capital account, including contributions, withdrawals, and their share of the income or loss.

Depreciation Schedules: Share schedules that detail the depreciation of partnership assets, which affect deductions.

Prior Year Tax Returns: Sharing past tax returns can help your advisors spot trends or issues to address in the current year.

Loan and Lease Agreements: Provide any documents related to business loans or leases, as these can impact deductions and financial reporting.

Sole Proprietorship Tax Checklist

A sole proprietorship is the simplest form of business structure, where the business and the owner are legally the same. This means all income and losses are reported on your personal tax return.

❗Must-Have Basic Information for Tax Season

Business Name (if different from your name): The trade name under which you operate, if applicable.

Social Security Number (SSN) or EIN: Depending on the nature and size of the business, you’ll need one or both for tax purposes.

Business Start Date: The date you began your sole proprietorship.

Business Address: The primary location of your business activities.

Type of Business: A brief description of the products or services you offer.

Bank Account Information: Details of the bank account used for business transactions (separate from personal accounts is recommended).

Licenses and Permits: Any local, state, or federal licenses or permits needed to operate your business legally.

Now, if you need assistance opening your business bank account, reach out to doola. We’ll provide you with a tailored list of banks that fit your business structure and specific needs. We highly recommend opening an account with Mercury because it’s incredibly flexible and designed to support modern businesses. 

Mercury offers a business account with no monthly maintenance fees, instant virtual card creation for secure online transactions, and advanced integrations with other financial tools, all wrapped up in a user-friendly interface that makes banking simple, even for those new to managing business finances. 

🏛️ What Kind of Government Forms Are Needed?

Form 1040: Your personal income tax return, where you report your business income and expenses using Schedule C.

Schedule C (Form 1040): This form is used to report income or loss from your business. It details your gross income, business expenses, and net profit or loss.

Schedule SE (Form 1040): Used to calculate self-employment tax, which covers Social Security and Medicare taxes.

Form 1040-ES: If you expect to owe more than $1,000 in taxes, you’ll need to make quarterly estimated tax payments using Form 1040-ES.

State Forms: Depending on your location, you may need to file state income tax returns or pay state business taxes.

💰 Financial Records You Should Keep Accessible

Income Records: Track all sources of income, including sales receipts, invoices, and bank statements.

Expense Receipts: Keep detailed records of all business-related expenses, such as office supplies, utilities, travel, and marketing. Proper documentation is essential for maximizing deductions.

Mileage Log: If you use your vehicle for business purposes, maintain a mileage log detailing the date, purpose, and miles driven.

Home Office Deduction: If you work from home, keep records of the portion of your home used exclusively for business, as well as related expenses like mortgage interest, utilities, and repairs.

📦 Keep These Asset Records Close

Depreciation Records: Document any assets you’ve purchased for your business, like equipment or furniture, and track their depreciation over time for tax deductions.

Inventory Records: If you sell products, maintain accurate inventory records, including costs, quantities, and sales.

Equipment and Property: Keep records of any significant purchases, including the date of purchase, cost, and purpose of the asset.

👨🏻‍💻 When a CPA Can Help?

Tax Planning: A CPA can advise on strategies to minimize your tax liability, such as timing income and expenses or making retirement contributions.

Tax Preparation: Ensures that your Schedule C, Schedule SE, and other relevant forms are correctly completed and filed on time.

Audit Support: If the IRS audits you, a CPA can represent you, handle communications, and guide you through the audit process.

✅ Information to Share with Tax and Bookkeeping Advisors

Income Records: Provide all records of business income, including sales receipts, invoices, and any other documentation.

Expense Documentation: Share all receipts and records of business-related expenses to ensure you claim all possible deductions.

Mileage Log: If applicable, provide your mileage log for vehicle-related deductions.

Home Office Expenses: If you claim the home office deduction, provide details of your home’s square footage, the area used for business, and related expenses.

Prior Year Tax Returns: Sharing last year’s tax return can help identify trends or issues that need to be addressed.

Dive deeper: The Ultimate Guide on Expert Tax Tips for Small Business Owners

S Corporation Tax Checklist

An S Corporation (S Corp) is a special type of corporation that offers the benefits of pass-through taxation while providing liability protection to its shareholders.

❗Must-Have Basic Information for Tax Season

Legal Name of the Corporation: The registered name with the state.

Employer Identification Number (EIN): The IRS-issued number for tax reporting.

Incorporation Date: The date when the S Corp was legally formed.

State of Incorporation: The state where the corporation is registered.

Business Address: The primary location of your business.

Corporate Bylaws: Document outlining how the corporation will be managed.

Shareholder Information: Details of shareholders, including their ownership percentage.

S Corporation Election (Form 2553): The form filed with the IRS to elect S Corp status.

Bank Account Information: The corporate bank account used for financial transactions.

Board of Directors Information: Names and contact details of the board members.

🏛️ What Kind of Government Forms Are Needed?

Form 1120-S: This is the U.S. Income Tax Return for an S Corporation.

It reports the income, gains, losses, deductions, and credits of the S Corp. It must be filed by the 15th day of the third month after the end of the corporation’s tax year.

Schedule K-1 (Form 1120-S): Each shareholder receives a Schedule K-1, which reports their share of the S Corp’s income, deductions, and credits. Shareholders use this to report their income on their personal tax returns.

Form 941: For reporting quarterly payroll taxes, including federal income tax withholding, Social Security, and Medicare taxes.

Form 940: This is the Employer’s Annual Federal Unemployment (FUTA) Tax Return.

State Forms: Depending on your state, additional forms may be required to report income and other state-specific taxes.

💰 Financial Records You Should Keep Accessible

Income Statements: Document all sources of income earned by the S Corp during the tax year. This should include sales revenue, service income, interest, and other revenue streams.

Expense Records: Keep detailed records of all business expenses, categorized appropriately (e.g., rent, utilities, salaries, professional fees). Accurate records are essential for maximizing deductions.

Shareholder Distributions: Track all distributions made to shareholders, ensuring they’re properly documented and align with the corporation’s earnings.

General Ledger: A detailed general ledger is crucial for tracking all financial transactions and preparing accurate financial statements.

📦 Keep These Asset Records Close

Depreciation Schedules: Keep detailed records of the depreciation of any business assets, such as machinery, vehicles, and office equipment. This affects your tax deductions.

Capital Assets: Record the purchase, sale, or disposal of capital assets, and maintain records of any related gains or losses.

Inventory Records: If applicable, track inventory levels, purchases, and sales throughout the year.

Property and Equipment Records: Maintain detailed records of any property or equipment owned by the S Corp, including acquisition dates, values, and any depreciation.

👨🏻‍💻 When a CPA Can Help?

Tax Planning: A CPA can help devise strategies to minimize tax liability, such as adjusting shareholder salaries versus distributions to optimize tax benefits.

Tax Preparation: Ensures that Form 1120-S, Schedule K-1s, and other necessary forms are correctly completed and filed on time, avoiding penalties.

Audit Support: If your S Corp is audited, a CPA can represent the corporation, handle communications, and navigate the audit process.

Compliance: A CPA ensures that your S Corp remains compliant with federal and state tax laws, which can be complex and vary by location.

✅ Information to Share with Tax and Bookkeeping Advisors

Financial Statements: Share the S Corp income statement, balance sheet, and cash flow statement.

General Ledger: Provide access to the general ledger, which includes all financial transactions of the S Corp.

Shareholder Distribution Records: Give detailed records of all distributions made to shareholders throughout the year.

Payroll Records: Share all payroll-related documents, including Form W-2s and details of payroll taxes paid.

Depreciation Schedules: Provide records showing the depreciation of the S Corp’s assets.

Prior Year Tax Returns: Sharing previous tax returns can help your advisors identify trends or issues that need to be addressed in the current year.

Loan and Lease Agreements: Provide any documents related to business loans or leases, as these can impact deductions and financial reporting.

Common Areas Where Businesses Struggle With Documentation and Record-Keeping

Let’s be real — keeping all your financial and legal documents in order is easier said than done. After interacting with countless businesses over the years, we’ve noticed some common areas where things tend to go a bit sideways.

Below are the areas where business owners — just like you — often find themselves needing a bit more help. And trust us, if they’re struggling here, it’s highly probable you might too.

Depreciation Schedules

Tracking the depreciation of assets over time can be a real headache. Many businesses struggle with keeping accurate and up-to-date records, which can lead to missed deductions or, worse, tax issues down the road.

doola’s bookkeeping services ensure that your asset depreciation is accurately tracked and recorded. With doola, you can rest easy knowing that your depreciation schedules are up-to-date, helping you maximize your deductions and stay compliant with tax regulations.

Payroll Records

Managing payroll is more than just cutting checks. Keeping detailed records of every payment, withholding, and tax paid is crucial, but it’s an area where many businesses fall short.

This is especially true for businesses that have grown quickly and haven’t adjusted their processes accordingly.

Shareholder Distributions

For corporations, particularly S Corps, tracking and documenting shareholder distributions accurately is a must. Many businesses struggle with ensuring that these distributions align with the company’s earnings and tax requirements.

Inventory Management

If you’re in a product-based business, keeping your inventory records straight can be a challenge. Inaccurate or incomplete records can lead to incorrect tax filings and inventory shortages or surpluses.

Capital Accounts for Partnerships

Partnerships often run into issues with tracking capital contributions and withdrawals. Mismanaging these records can lead to discrepancies in profit-sharing and partner equity, which can cause friction down the line.

Loan and Lease Documentation

Maintaining detailed records of loans and leases is another area where businesses commonly need help. Whether it’s tracking interest payments, principal balances, or lease terms, missing or inaccurate documentation can lead to financial mismanagement.

IRS Compliance Documents

Keeping up with all the IRS-required documents is no small feat. From ensuring you have your IRS acceptance letter to maintaining accurate records of all your tax forms, it’s easy to see why businesses often need a helping hand here.

Staying on top of IRS compliance is critical, and we can help by ensuring that all your required documents, including your IRS acceptance letter and tax forms, are correctly filed and easily accessible. doola’s services also include ongoing compliance monitoring, so you’re always in good standing with the IRS.

Tick Off Your Entire Tax Checklist with doola

When it comes to managing your business, staying on top of your financial records and compliance can feel like a full-time job in itself.

But it doesn’t have to be.

With doola, you can confidently tick off every item on your tax checklist — minus the stress and guesswork.

Why Choose doola?

✅ Comprehensive Services: doola covers bookkeeping, tax filing, and IRS compliance, keeping your business organized and compliant.

✅ Expert Guidance: Our team of CPA professionals knows exactly what it takes to keep your financial records in top shape.

✅ Peace of Mind: Focus on growing your business while we handle the heavy lifting of your financial and tax management.

✅ Proactive Support: doola helps you stay ahead, ensuring your business not only survives but thrives.

Schedule a free consultation with us today and discover how we can help you tick off your entire tax checklist with ease.