Business Tax Preparation Checklist: What You Need Before Filing

Posted On: Wednesday, September 10, 2025

Business Tax Preparation Checklist

Tax season can overwhelm business owners as even the best-prepared try to organize paperwork, receipts, and records from an entire year. Having a structured tax preparation checklist ensures you don’t miss key information that could affect your return or trigger an IRS notice. At Rakatansky CPA Accounting & Consulting, we help New England businesses prepare for tax season confidently.

This guide walks you through the essential documents and forms to gather before filing your taxes.

Income

Your tax return must reflect every source of income–not just your primary operations. Collect all documents related to your income, including:

  • Gross receipts from sales or services
  • Accounts receivable/invoices
  • Bank statements
  • Credit card statements
  • 1099 Forms for all sources of income
  • Any other proof of income.

Cost of Goods Sold (COGS)

If your business sells physical products, calculate your COGS. Gather documents showing:

  1. The dollar value of your inventory and materials at the start of the year (beginning)
  2. The dollar value of all inventory and materials purchased during the year (purchases)
  3. The dollar value of inventory and materials remaining at year-end (ending).

To calculate your COGS, add together your beginning and purchase values, then subtract your ending value. For example, if a bakery begins the year with $10,000 in ingredients and supplies, buys another $40,000 during the year, and ends the year with $8,000 in ingredients and supplies, its COGS is $42,000.

$10,000 (beginning) + $40,000 (purchases) – $8,000 (ending) = $42,000.

Expenses

To deduct relevant expenses, you must document and collect them. These can include:

  • Office expenses. Gather receipts for office supplies, rent or mortgage statements, utilities, maintenance costs, and phone bills.
    • If you work from a home office, document the square footage of your office space, the square footage of your home, any mortgage interest or rent paid, homeowner’s or renter’s insurance payments, utilities, your home’s cost, and the date when you began using it as an office. This information will calculate your home office deduction.
  • Advertising expenses. Keep relevant receipts.
  • Transportation and travel expenses, including mileage, public transportation, taxi or rideshare, parking, tolls, hotel, and meal costs. Miscellaneous business-related expenditures may also be deductible.
  • Professional fees from attorneys, consultants, accountants, bookkeepers, etc.
  • Insurance policy details and expenses
  • Payroll expenses, including wages and benefits. Collect Forms W-9, I-9, W-2, 1099, and 1099-MISC for all employees.
  • Equipment costs. Find receipts for any purchases and include a depreciation schedule.

Business Structure-Specific Forms and Documents

File any relevant Forms 1099, 1096, W-2, W-3, 940, and 941 regardless of your business structure.

  • Sole Proprietors
    • File Form 1040 Schedule C and Schedule SE form for self-employment taxes.
    • Gather federal tax ID numbers (TINs) and the previous year’s tax returns.
  • Partnerships
    • File Form 1065.
    • Collect your partnership agreement, federal EINs, and the previous year’s tax returns.
    • Each partner should gather their TINs, ownership percentage, contributions, distributions, and documentation of any other relevant financial transactions.
  • S Corporations
    • File Form 1120-S
    • Gather documentation of your S election (or a prior Form 2553), your company bylaws, federal EINs, and the previous year’s tax returns.
    • Shareholders should collect their TINs, documents showing the distribution of shares, documentation of financial transactions within and outside the corporation, and proof of their compensation.
  • C Corporations
    • File Form 1120.
    • Provide documentation proving incorporation, bylaws, federal EINs, tax credit certificates, dividends paid, dividends received, the corporation’s accumulated earnings account, and the previous year’s tax returns.
    • Shareholders owning at least 20% of the company’s stock must provide their personal information, and the corporation must document outstanding shares.
  • LLCs
    • LLCs are taxed differently depending on the chosen classification. Single-member LLCs typically file as sole proprietorships. Multi-member LLCs are often taxed as partnerships, but may choose to file under C Corporation or S Corporation rules.
    • Regardless of how they are taxed, LLCs must provide their LLC operating agreement and articles of organization.

Final Thoughts

Make tax season easier by organizing income, inventory, expenses, and knowing which forms to file. Staying organized reduces errors, avoids penalties, and maximizes deductions.

We know this list may seem overwhelming, but it doesn’t need to be. With professional tax-planning services from Rakatansky CPA Accounting & Consulting, tax season is a breeze. We provide proactive, year-round services to ensure you stay compliant.

Contact Rakatansky CPA Accounting and Consulting today to see how we can lift the burden of tax season.