Personal and Business Tax Returns

If you also own a business, your business entity will have its own tax obligations. The way you handle personal and business taxes depends on the type of business structure you have.
For owners of pass-through entities such as sole proprietorships, partnerships, or certain LLCs, personal and business taxes are filed together. This streamlines the process and simplifies tracking your expenses.
On the other hand, corporations or LLCs that choose corporate taxation enjoy the benefit of separating their business finances from personal finances in the eyes of the IRS. This provides limited liability and may offer more opportunities for tax deductions.
It’s important to note that personal and business taxes have different deadlines, making it easier for you to manage your financial obligations effectively.
Depending on how you choose to structure your small business for taxation purposes, you may have specific tax requirements. For instance, if your business income is reported through your personal taxes as a pass-through entity, you’ll need to pay personal income tax and property tax.

However, if your small business is taxed as a corporation, you will be responsible for paying income tax and self-employment tax. This typically applies to S-corporations, C-corporations, and LLCs.