Sole Proprietorships

(Schedule C)

Sole proprietors and single-member LLCs file their business taxes with their personal tax return on Schedule C of Form 1040. While the business structure and form appear simple, the business itself (and it's records) can be as complicated as a large C-Corporation.

S-Corps

(Form 1120-S)

S-Corps are special entities specifically designated to be taxed as an S-Corp. It would be an LLC or a Corporation. Notice must be given to the IRS that the company should be classified as an S-Corp. Like partnerships, S-Corps don't pay taxes (the owners do), but an information return must be sent to the IRS and states with the taxes paid by the shareholders based on their Form K-1.

Partnerships

(Form 1065)

If your are a partnership or a multi-member LLC, the taxes are paid by the individual owners. However, the partnership (or LLC) would need to file an information return to the IRS and state(s) showing income, expenses, and additional financial statements as needed. Individual owners are then issued Form K-1 to report on their personal income taxes.

C-Corps

(Form 1120)

C-Corporations are deemed persons, meaning they are liable for their own taxes. Shareholders of C-Corporations do not pay taxes on the earning of the corporation, but will pay taxes on any dividends or capital gains from their stock ownership. C-Corporation returns tend to be the most complicated business returns filed with the IRS or the states.