We take care of all your accounting and tax needs without you having to search for the right accountant or bookkeeper elsewhere. It’s all part of our aim to become your trusted business partner, providing the support, services and expertise you need to make running your organization a breeze.
How Incfile’s Accounting and Business
Bookkeeping Service Works
Staying on top of your finances, understanding where you’re spending money, calculating tax, and filing with the IRS and your state can take a lot of time and effort. Here at Incfile, we like to make things easy. We take care of all your transactions, reconciliation, tax preparation, and filing for you. Plus, we offer a free tax consultation to get you started.
All packages include…
New Client Kick-Off Call
Onboarding welcome call to make sure your account is all set up and you know how to access the available services.
Mobile Account Access
Mobile-friendly bookkeeping software allows you to handle all of your accounting needs.
We continuously update your bookkeeping and provide you with financial reports every quarter.
Unlimited Tax Consultation
Access to accountants for any IRS notices or tax-related questions.
Preparation of One Business Tax Return
We will file your federal and state tax return.
Free Tax Consultation
Every accounting package includes a free tax consultation. A small business accountant will review your business finances and help you understand where you could be saving money. They will offer practical advice on your expenses, tax commitments and other areas to help you reduce the tax you owe.
Professional Small Business Bookkeeping
You get access to easy-to-use bookkeeping software and monthly reports, so you’ll always know how your business is doing. You also get support from a professional, qualified bookkeeper as part of your expert bookkeeping team. Many new business owners miscategorize transactions, which can result in missing out on possible tax savings. A professional bookkeeper can help you avoid these mistakes and maximize your tax deductions.
Reconciliation of Business Accounts
Our bookkeepers will reconcile all the transactions in your business bank accounts and your credit card accounts. That means you can track where every dollar is going and match the money you’re actually spending against your reporting and accounting.
Business Tax Returns
If you choose Incfile’s “Growing” package, our bookkeepers and accountants will prepare, review and file sole proprietor, LLC, S Corporation and C Corporation business tax returns, ensuring that you meet the government’s filing requirements. Please note that we do not file or calculate sales and use or other types of business tax, other than your overall business tax return for your state and the IRS. (Not included with the “Starter” package).
Personal Tax Returns
When you choose Incfile’s “Growing” package, our bookkeepers and accountants will prepare, review and file your personal 1040 tax return and a tax return with your state, if needed. (Not included with the “Starter” package).
Our Accountants Know the Ins and Outs of Business Tax Returns
With small business accounting, it’s important to understand the unique tax requirements of different types of business entities. Incfile’s business accountants take the confusion out of tax filing and help you ensure your business follows the right procedures, whether you’re an LLC, S Corp, or C Corp.
LLC Tax Filing
A limited liability company (LLC) is treated as a “pass-through” or “disregarded” entity for tax purposes. This means your LLC does not pay taxes itself, instead, all of the LLC’s profits or losses are “passed through” directly to the personal tax returns of the owners of the LLC and taxed there.
Even though your LLC is a pass-through entity, it will still need to file some tax forms.
- If you run an LLC yourself, you will need to file a 1040 with the appropriate business and self-employment schedules.
- If you run an LLC with others, you will need to file a 1065 partnership return, together with a 1040 with the appropriate schedules .
- If you have opted to be taxed as an S Corporation, you will need to file an 1120-S S Corporation tax return, together with a 1040 with the appropriate schedules.
S Corporation Tax Filing
If you set up your company to be an S Corporation, or elect to have your LLC file taxes as an S Corporation, this may provide you with some tax advantages to reduce your self-employment tax liability.
S Corporations, like LLCs, do not have to pay corporate income tax. Instead, the company’s income gets passed through to the owners and is reported on the company owners’ personal income tax returns.
The tax treatment of S Corporations is different from LLCs, in that the company owners can choose to pay the members a salary (subject to payroll taxes) and also assign additional income to be treated as a distribution, which is not subject to payroll or self-employment taxes. This gives the owners some flexibility in how they pay themselves from the company’s profits, as well as reducing payroll taxes.
- Filing as an S Corporation requires you to file Form 2553: Entity Classification Election.
- You will also need to file an 1120-S: U.S. Income Tax Return for an S Corporation or an 1120-A, the short version of this form.
- Review how the S Corporation can considerably reduce your self-employment tax obligations with our S Corporation Tax Calculator.
C Corporation Tax Filing
A C Corporation is required to pay corporate income tax. Unlike an LLC or S Corporation, this type of business structure is not a pass-through entity. This means your C Corporation will have to pay taxes on the business’s income, and then the business owners will also have to pay personal income tax upon the taxable dividends paid to the owners by the business. This is known as “double taxation” because your company has to pay corporate income tax first, and then you as the business owner have to pay personal income tax.
- C Corporations are required to file Form 1120: Corporation Income Tax Return.
- The owners must report their income from the C Corporation (salary and any dividends) on their personal tax returns.
- As the owner of a C Corporation, if you pay yourself a salary, you will also have to pay personal income taxes and other withholdings like payroll tax, based on your salary.