LLC, Small Business

Here we go- this form is long. And Yes, it is required for a quality, comprehensive tax return.

Corporations / Partnerships- if you require a corporate or partnership tax return such as Form 1065, 1120 or 1120S, you may use this Business Worksheet to detail your information.

Business Worksheet

This information can be found at if necessary. The IRS activity code is important for reporting on your tax returns. This allows the IRS to assess your income and expense ratios against other companies in your industry. For example, realtors will have higher mileage deductions than retailers.


Are there multiple owners or partners in your business? Your spouse will count as a partner if they have any ownership interests in the business as well. If this applies to you, please detail the other owners with addresses, social security numbers and ownership percentages-

Business Startup

Did you start your business in 2020? If so, did you transfer any equipment, tools, computers, office furniture, etc. from personal use to business use? Please describe below including values at time of transfer-

Did you have startup costs such franchise fees, equipment purchases, attorney fees, formation fees, etc.? If so, please describe them below-

Equipment Purchases

During 2020, did you purchase any equipment, office furniture, client lists, etc.? If so, please provide copies of invoices or sales agreements, and summarize below-

If your business owns a vehicle that you use personally, you might have to consider that benefit taxable income. Unless your business needs a vehicle for nearly 100% business use, you are typically better off owning it personally and getting reimbursed through an Accountable Plan. Please read our tax articles about this at-

There might be situations where charging your company a lease rate for the use of your automobile provides a better tax position than the mileage deduction / reimbursement.

Accounting Records

If you use QuickBooks or MS-Excel for your accounting records, please make sure your bank reconciliations are completed and all transactions are categorized. Double check your entries after reviewing the rest of the categories in this submit form. Then upload the data file to your client portal. If you are sending a QuickBooks file, please send us the raw or backup file and NOT the accountant copy.

If you use online accounting software such as Xero or Wave, or our least favorite, QuickBooks Online, and you feel comfortable giving us access, please use as the email address for the invitation.

Note: If we have to make entries or clean up your accounting records, additional time will be spent in preparing your tax returns and there will be a small fee added for this service.

Even if you use accounting or bookkeeping software, please review and complete pertinent areas of this Business Worksheet to provide the information not contained in your accounting records.

Sales / Income

* All 1099s must be separately reported on your tax return and tied to your business. If a 1099 is received in your SSN but you use an EIN to file your tax returns, we will nominate this income from your SSN to your EIN. In all cases, please send all copies of your 1099s so we can properly record these.


Did you receive a 1099-K from a merchant service such as Amazon or Paypal? These forms typically only include gross sales. If you received one, please describe any personal activity, returns, chargebacks or refunds that are erroneously included on the 1099-K below-


Classic Expenses

The IRS is a bit out of touch (shocking, we know), but to ensure accuracy and proper reporting on your tax returns here is the list of common expenses in the order that appears on your Schedule C. Additional expenses follow this list.

Meals and entertainment when visiting with a client or prospect is deductible at 50 percent. Please provide the entire amount spent, and we will reduce the amount according to IRS rules. Meals and entertainment at 100 percent is reserved for things like company parties and meetings.

IRS Disclosure

The IRS requires paid tax professionals and CPAs to ask all taxpayers who deduct travel, meals and entertainment expenses if they have proof or supporting evidence of the expense and the business connection.

Yes    No    NA

Additional Expenses

Shared Expenses (Mileage, Home Office, Cell Phone)

Shared expenses are those expenses that you use both personally and for business. The most common are mileage for your personal automobile, home office expense, cell phones and internet. It is nearly impossible to consider your automobile, cell phone and internet to be 100% business use unless you own two automobiles, cell phones, etc.

If you a single member LLC, a husband and wife partnership or a sole proprietor we need two additional forms for deducting automobile expenses and mileage, and the business use of your home (home office). Once you complete this Business Worksheet, you will be directed to our home page of Online Submit Forms, or you can click on the fancy buttons below to open a separate browser window-

In addition to the automobile expenses and home office, please tell us the business portion of your cell phone and internet expenses.

Health Insurance, HSA, LTC

Self-Employed Health Insurance (SEHI), Long-Term Care (LTC) and Health Savings Accounts (HSA) is a deduction to all small business owners, including coverage for spouse and family. It is a direct deduction on page 1 of your Form 1040, and is not subjected to income thresholds and phaseouts associated with Schedule A (good news). However, if these health related expenses DO NOT reduce self-employment taxes unless you have a Health Reimbursement Arrangement (HRA). Please contact us if you have an HRA. For more information on the savings, use this link-

Also, if you are an S Corporation then these expenses must be handled by adding the amount to Box 1 of your W-2. Please let us know if this applies to you, and we do NOT perform payroll services for you. For more information use this link-

Issue 1099s

Sorry, we have to ask. The rule is- if you paid more than $600 in rents, services (including parts and materials) or other income payments to any individual or LLC in connection with your trade or business, you are required to complete a 1099-MISC. You also must submit it to the IRS and mail a copy to the recipient. 1099s are typically required to be sent by January 31. Later submissions are allowed but might incur penalties. 1099-MISCs are not required to be sent to corporations.

Yes     No

Yes     No     NA

If 1099s were required to be filed, and you want us to file them for you please list the recipients name, full address, SSN or EIN, and the amount paid. Our normal fee is $30 for the first 1099, then $10 each thereafter.

S Corp Election

If you are not an S Corporation but you are earning more than $30,000 per year after expenses, you might want to consider making an S Corp election. We can retroactively make this election to January 1 2020 and save 6 to 8 percent in taxes. Check out our KnowledgeBase articles on the Taxpayers Comprehensive Guide to LLCs and S Corps at-


Do you have a SEP IRA or 401k plan? If so, please detail the contribution amounts made throughout the year, the type of contribution (SEP IRA, 401k profit sharing, etc.), and the dates below-

If you and your spouse operate the business together, but the business is NOT an LLC, partnership or S Corporation, then it might make sense to split the business activity evenly between taxpayer and spouse to maximize Social Security benefits. So, if you are a sole proprietor and you want to split activities, describe each person’s role below-

Yes     No

Yes     No

Cash Balances

Accounts Receivable (if applicable)

Do you recognized income when you are paid (cash based), or when you invoice a customer (accrual based)? It is not uncommon nor is it incorrect to use an accounting package such as QuickBooks to track open invoices and manage your Accounts Receivable, yet use a cash method of accounting. Please describe your system below-

Loan Balances (if applicable)

* Please provide an amortization schedule or some other document detailing the principal payment and the interest payment for the year.

During 2020, did you receive any new loans or payoff any loans? If so, please include a detailed payment schedule and describe the circumstances below-

During 2020, did you lend money or make any business loans? If so, please include a detailed payment schedule and describe the circumstances below-

Wages, Owner Draws, Cash Injections, Kids On Payroll

Did you have any employees in 2020 in which you ran payroll, withheld taxes and completed the filings? Please provide year-end summaries from the payroll service you used (if it wasn’t Aligaen Accounting, LLC), and briefly note any comments or issues below-

What is the amount of owner draws or distributions that were paid to the owners in 2020?

Did you inject any cash from your personal funds into the business in 2020 (this is NOT the same as you paying for business expenses with personal funds- that is technically a reimbursement)? If you transfered money or wrote a check from your personal funds into the business checking account, please tell us how much.

Did you pay your children a wage? If No, have you considered it? There are some excellent tax advantages by doing so. If Yes, please provide the names of your children on payroll, and the work they performed below-

Yes     No

Owner Reimbursements

Did the company reimburse you for any expenses that you personally paid for? If so, please list below-

Sales Tax

Did you collect any sales tax in 2020? Does your gross revenue above include sales tax collected? Are all filings current and paid for? Please provide copies of your sales tax filings (if available) and describe below-

Yes     No

Yes     No

Yes     No

Yes     No

Yes     No

Yes     No

Yes     No


Please select the tax year that this information is associated with. In addition, please enter your name so we can group your submissions together plus your email address. Click the Submit button below to securely and safely send this information to us. You can submit as many forms as needed. If you later discover an error- simply re-submit your information and check the box below letting us know.

Yes     No