General checklist and self-employed
Income Items
Be sure to include all income sources when creating your small business checklist. This could include income from your day-to-day operations as well as any investment or secondary income.
Gross receipts from sales or services
Sales records for accrual-based taxpayers (accounts receivable)
Returns and allowances
Business checking/savings account interest (1099-INT or statement)
1099-NEC (independent contractor or professional services work) or W-2 income
Other income, including rental income, federal and state gasoline or fuel tax credit or refund
Costs of goods sold
Some categories may not apply each tax season, so you should only include what applies for 2021 on your small business tax checklist. If you produce, purchase, or sell merchandise in your trade or business, you’ll need to take your inventory into account at the beginning and end of the year.
Beginning inventory total dollar amount
Inventory purchases
Ending inventory total dollar amount
Items removed for personal purposes
Materials and supplies
Expenses
A wide range of costs can fall under applicable business expenses. Don’t miss recording any of these on your small business tax preparation checklist. Our tax pros will help you find each and every deduction you deserve.
Advertising
Phones (landline, fax or cell phones related to business)
Computer & internet expenses
Transportation and travel expenses
- Local transportation: Did you take any business trips this year? You’ll want to include your mileage along with any car and truck expenses. For public transportation, parking and tolls, you should include your contemporaneous log (recording of transactions as they happen) or receipts.
- Travel away from home: You should account for actual expenses if you drove — or airfare for any flights. There are helpful app-based trackers available so you can keep up while you’re on the go. Be sure to include costs for hotels; meals and tips; and taxi fares and tips. Remember to include any miscellaneous expenses, such as your internet access (hotel, internet café, etc.).
Commissions and fees
Contract labor expenses paid to subcontractors and independent contractors
Depreciation
- Cost and first date of business use of assets
- Records relating to personal use of assets
- Sales price and disposition date of any assets sold
- Documentation of prior-year depreciation
Amortization of intangible assets (e.g., patents or copyrights held)
Business insurance
- Casualty loss insurance
- Errors and omissions
- Other
Interest expense
- Mortgage interest on building owned by business
- Business loan interest
- Investment expense and interest
Professional fees
- Lawyers, accountants, and consultants
- Tax preparers
Office supplies
- Pens, paper, staples, and other consumables
Rent expense
- Office space rent
- Business-use vehicle lease expense
- Other
Office-in-home
- Square footage of office space
- Total square footage of home
- Hours of use, if operating an in-home daycare
- Mortgage interest or rent paid
- Homeowner’s or renters’ insurance
- Utilities
- Cost of home, cost of separate improvements and first date of business use
Wages paid to employees
Employee benefit expenses
Other expenses
- Repairs, maintenance of office facility, etc.
- Estimated tax payments made (including property taxes and sales taxes if applicable)
- Other business-related expenses
- Health insurance: Whether you’re a sole proprietor who is covering their family, a partner or you have S corporation shareholders, you’ll want to account for premiums paid on behalf of those individuals. Also, you should gather information on your spouse’s employer provided insurance if applicable.
Tasks that should be completed
Make sure you’ve completed all related tax issues such as:
File Form 1099-NEC and Form 1096
File Form W-2 and Form W-3
File federal and state payroll returns (Form 940, 941)
Other items
Make sure you’ve gathered related information such as:
Any financial statements generated by the business such as a balance sheet, profit/loss statement or cash flow statement
Completed year-end books
Information regarding any charitable contributions
Information regarding NOLs
Partnerships—Form 1065
Copy of the partnership agreement with any amendments and bylaws
- If an LLC taxed as a partnership, copies of the LLC operating agreement and articles of organization
List of federal and state tax employer identification numbers (EINs)
Last year’s Form 1065 and Schedules K-1 and any state or local returns
Partner information
Name, address, and SSN/EIN of each partner during the year
Each partner’s ownership percentage including their profit and loss percentage if different
Information regarding capital contributions, distributions or other financial transactions involving a partner
Information regarding:
- each partner’s share of liabilities
- guaranteed payments made to any partner
- any insurance plan provided to any partner
- any liquidating payments made to any partner
- any change in ownership percentages including the addition or loss of partners
S Corporations—Form 1120S
Documents
IRS acceptance letter of S election or previously filed Form 2553
A copy of the business’ bylaws and articles of incorporation
- If an LLC taxed as an S corporation, copies of the LLC articles of organization and operating agreement
List of federal and state employer identification numbers (EINs)
If the corporation used to be a C corporation, any information carried over after converting to an S corporation
Last year’s Form 1120S and Schedules K-1 and any state or local returns
Shareholder information
Name, address and SSN/EIN of all shareholders during the year
The number of shares that each shareholder owns
Information regarding any:
- capital contributions, distributions, or loans to shareholders.
- reasonable compensation paid to any employee/shareholder
- insurance plan provided to any shareholder
- changes in ownership throughout the year
C Corporations—Form 1120
Documents and other information
Articles of Incorporation and bylaws
- If an LLC taxed as a C corporation, copies of the articles of organization and operating agreement
Form 8832 if the entity has chosen to be taxed as a C corporation using the check-the-box regulations
List of federal and state employer identification numbers (EINs)
Any granted credit certificates
Last year’s Form 1120 including any schedules of carryover losses, deductions or credits from prior years and any state or local returns
Information regarding any dividends received
Information regarding the corporation’s accumulated earnings account
Information regarding any business reorganization or change in ownership that happened during the year
Shareholder information
Information about any shareholder owning 20% or more of the company’s stock
Information regarding the number of shares outstanding
Information regarding any distributions of cash or property to shareholders
Additional items for your small business checklist
Make sure you’ve completed all related tax issues such as:
File Form 1099-NEC and Form 1096
File Form W-2 and Form W-3
File federal and state payroll returns (Form 940, 941)
COVID Related Information:
Information about 2021 COVID-19 related grants, economic injury disaster loans (EIDLs), or paycheck protection program (PPP) loans. See CARES Act tax information for Small Businesses.
Advance payment notices
Stimulus (Economic Income Payments) recipients: look for IRS Letter 6475. Review details about IRS Letter 6475.
Advance Child Tax Credit payment recipients: look for IRS Letter 6419. Review details about IRS Letter 6419.