Workers Comp Form 1120: Fill & Download for Free

The short answer - no.The long answer - there are other ways to accomplish your goals and some of it depends on how you're organized.LLCs can choose to file taxes as though they are a corporation (form 1120 or form 1120s) or a partnership (form 1065). However, if you are a single member LLC, you cannot use a form 1065 - you must file schedule C on your personal form 1040.If you've chosen to file as a corporation, then you can pay yourself a small(ish) salary and take the rest of your income as dividends/shareholder distributions. There are varying formulas that different CPAs recommend to their clients. I tend to lean a bit on the conservative side and I recommend that my clients take approximately 50% of their profits as salary and the balance as distributions. The salaries are subject to unemployment insurance, FICA taxes and worker's comp insurance calculations (although you can choose to exempt yourself from worker's comp), but the distributions are not. There is an added need within a corporate structure to have "reasonable" salary. So even if you do not follow a 50% split and choose something lower for salary, it still must be reasonable. For example, a doctor who has $300,000 of corporate income may not pay him/herself a salary of $30,000. The IRS will view that (rightfully) as an attempt to avoid payroll taxes and assess additional tax, penalties and interest accordingly.If you've chosen to file as partnership or if you are a single member LLC, then you just write yourself a check for whatever amount you choose. Paying a salary to an LLC member is not the proper way to be compensated. You simply take whatever you like out of the company as an equity distribution. ALL of your net profits are taxable for both parts of FICA (Self Employment Tax), but none of it is subject to unemployment insurance.Regardless of which tax structure you've chosen - partnership, sole proprietorship or corporate, it is never proper to pay yourself as a subcontractor. Amounts you pay yourself as a partnership or a sole proprietor are not deductible as an expense. For a corporation, only amounts paid to you as salary are deductible.

That depends. First off, I wonder what kind of “1099 worker” are you? The reason I ask is that many employers try to avoid (evade) their payroll tax responsibilities by incorrectly and illegally classifying a worker as a “1099 employee.” (Oxymoron, at best)… Check this website to see if in fact you are an employee and not an independent contractor. Understanding Employee vs. Contractor Designation ( IRS website)Now, if you really are an employee, your employer is cheating you out of workers comp, and half of the total employment taxes you will end up having to pay ( which should have been their responsibility). You are also not covered under any retirement program, health insurance, or other benefits which the employer may have. You are also exempt from OSHA, EPA, FLSB and other employee protections.Here’s the rub: let’s say you go along with this charade and call yourself an independent contractor when you really are an employee. You deduct all sorts of “business expenses” and the like. The IRS can and has attacked these kinds of situations, and there are court cases where their position is upheld. What happens is nasty: they deny all your expenses, charge you the employee half of the payroll taxes and you are left holding the tax bag. Seems unfair, outrageous and just plain wrong, but hey, we’re dealing with the IRS here.Let’s assume you really are an independent contractor. What will having a LLC do for you? Actually, for most people, practically nothing. The so-called liability protection is pretty slim in reality, making you “look” like a “real business” is of dubious benefit, and the other tax benefits are somewhat complex.If you have a LLC, you can elect to be taxed as a S-Corp or C Corp. There could be some tax savings in doing that, but it will come at a steep cost, both administratively and in continuing administrative burden. Being a S Corp for taxes allows you to take a reasonable salary and then profit distributions, which are not subject to FICA. That sounds marvelous, except that the “reasonable compensation requirement” necessitates that you explain how what your employer (the company who’s paying you) is greater than “reasonable compensation” ( in other words, how do you justify taking a lower salary out of the S-Corp taxed LLC) If this sounds bizarre and complex, welcome to tax dodging 101. You are going to have to make monthly payroll tax deposits, file quarterly and annual payroll tax returns, keep a separate set of LLC books, prepare a separate tax return, and for goodness sake, keep LLC and personal transactions separate and distinct. You’ll need a CPA to prepare the 1120-S form, W-3, W-2, SSA filing, 941’s, 940, state UI, state withholding and state income tax. Whew! Was all this worth the maybe max tax saving of $ 3000?. I think for most people the cost of doing it all exceeds the benefits.

1. Know your forms:- The first step is determining the correct tax form to use. In essence, every business needs to report its business earnings to the IRS and pay taxes, but the exact forms you'll use depend on your business structure.Partnerships report their income/losses/expenses on Form 1065. If you are a sole proprietor, then you report your business income and expenses on a Schedule C attached to your personal income tax return. Likewise, if your business is an LLC treated as a sole prop, you also use the Schedule C attachment. But if you have a corporation or have elected to treat your LLC as a corporation, then you will need to prepare a separate corporate tax return with Form 1120. Use Form 1120S is if you have elected S Corporation Status.The IRS provides helpful tables that break down the necessary tax forms for each business type.2. Home office deduction:- Many small business owners are intimidated from taking the home office deduction, because they've been told it's a red flag for an IRS audit. However, if you are legitimately entitled to the deduction, you should take it, as it can add up to thousands of dollars in deductions. In order to qualify for the deduction, you need to have a dedicated space in the home that you use solely for the business and nothing else (and proof of that fact).Starting with the 2013 return, you now have the option to use a simplified method for calculating the home office deduction. In the past, you needed to add up your actual costs (mortgage/rent, utilities, etc.) and multiply that figure by the percentage of your home that's dedicated to your office.While the simplified deduction will save you time and paperwork, it may give you a smaller deduction. Savvy tax filers should calculate the home office deduction using both methods and see which is more advantageous. Of course, if you haven't kept track of your home expenses and don't have documentation to back it up, then you should take the simplified deduction.3. Properly classify your office equipment:- First-time and experienced business filers often get tripped up when categorizing expenses as equipment versus supplies. Supplies include things that you used during the year, such as printer paper, pens and printer ink.Equipment (also called capital expenditures) are typically higher-value items that will last significantly longer than one year. Computers, software, office furniture, and servers are all examples of equipment. With the Section 179 deduction, you are able to write off the entire cost of new equipment in one year (up to $500,000), rather than taking depreciation over multiple years.Add up any computers, software, and other equipment you purchased in 2013 in order to get a greater deduction for 2013. And make sure to report these purchases on Form 4562.4. Deduct your insurance costs:- Any insurance premiums related to liability, malpractice, workers' comp, and property are typically deductible as business expenses. Commercial vehicle insurance and life insurance premiums may also be deductible, but rules vary by business type.Business owners of sole proprietorships, partnerships, and S Corporations may be able to deduct the premiums paid for medical and dental insurance for themselves, their spouse, and dependents. In addition, if you have a company with fewer than 25 full-time employees and pay at least half of your employees' health insurance premiums, you may qualify for a tax credit up to 35% of the cost under the Small Business Health Care Act.5. Keep tabs on travel and entertaining expenses:- Did you drive to meet with potential clients, fly out to an industry seminar or tradeshow, or take a client to dinner or a baseball game? If so, you may be able to deduct some of these expenses.For example:If you picked up the tab for entertaining a current or prospective client, you can deduct 50% of the cost as long as business was discussed at the event or the entertainment takes place immediately before or after a business discussion. Be sure to write notes on the receipt, such as whom you were meeting with and what business was discussed.You can deduct 100% of your travel costs if the primary purpose of your trip is for business. If you get some downtime and are able to stay a few extra days after the business is done, that's fine. But, don't try to expense your airfare for a seven-day trip to the Florida Keys for a two-hour meeting.6. Small deductions add up:- Small business owners should keep track of any miscellaneous expenses, as these can really add up over the course of a year. For example, did you buy any books or take an online course to hone your skills? Did you pay dues to an industry organization? These can all be write-offs. Likewise, any interest on credit used to finance business purchases is fully deductible. If you drive to meet with customers, you can take a standard mileage rate deduction (it's 56.5 cents per mile for 2013). And don't forget other business expenses such as web hosting, Internet bill, mobile phone plans, stamps, printer ink and so on.7. Need more time?If the deadline is approaching too quickly for your taste, you can file for an extension. It's better to get your return right than rush to meet the deadline. However, keep in mind that while you get extra time to file, you don't get extra time to pay. If you need to ask for an extension and anticipate you will owe money, you should estimate what you owe and send the payment when you request the extension. Otherwise, you'll be stuck with interest and penalties when you finally do send everything in.