Dealing with tax forms is an important part of running a business. Handling tax forms properly maintains compliance with government regulations and tax laws, which helps businesses avoid legal repercussions—such as penalties and audits—and maintain a reputable standing with tax authorities. In fiscal year 2025, US businesses paid $486.4 billion in income taxes, before refunds.

Tax forms offer businesses a detailed snapshot of their financial health, which can help with planning and resource allocation. Businesses can use these forms to gain insights into revenue streams, expenditure trends, and potential tax liabilities. This helps improve financial performance and guide long-term business planning.

Below, we’ll cover the different types of tax forms and look at best practices businesses can follow to manage these important forms.

What’s in this article?

• Which tax forms apply to your business
  
• Types of tax forms for businesses
  
• Filing deadlines at a glance
  
• Income tax forms
  
• Employment tax forms
  
• Estimated tax forms
  
• Self-employment tax forms
  
• Excise tax documentation
  
• Best practices for managing tax forms as a business
  
• How Stripe Tax can help
  

Which tax forms apply to your business

The exact tax forms you’ll need for your business will depend on the business structure you chose. Here’s how it breaks down.

Types of tax forms for businesses

The IRS requires businesses to file different tax forms depending on their location, structure, operations, and financial activities. Here are some common forms required for many types of businesses:

Income tax forms

• Schedule C (Form 1040): Sole proprietors and single-member limited liability companies (LLCs) use Schedule C, Profit or Loss From Business, to report their business income and expenses. The form is filed as part of their individual tax return (Form 1040).

• Form 1065: Partnerships use Form 1065, U.S. Return of Partnership Income, to report their annual income, deductions, gains, and losses. The partnership doesn’t pay income tax. Instead, profits and losses are passed through to the partners, who report their share on their individual tax returns.

• Form 1120: C corporations, which are separate legal entities from their owners, file Form 1120, U.S. Corporation Income Tax Return, to report their income and calculate their corporate income tax.

• Form 1120-S: S corporations, which pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes, use Form 1120-S, U.S. Income Tax Return for an S Corporation.

Employment tax forms

• Form 941: The Employer’s Quarterly Federal Tax Return, Form 941, is used to report federal income taxes withheld from employees’ wages as well as the employer’s share of Social Security and Medicare taxes.

• Form 940: The Employer’s Annual Federal Unemployment (FUTA) Tax Return, Form 940, is used to report and pay unemployment taxes to the federal government.

• Form W-2: The Wage and Tax Statement, Form W-2, is provided to employees and details their annual wages and the taxes withheld from their paychecks.

• Form W-3: Employers use Form W-3, Transmittal of Wage and Tax Statements, to transmit copies of Form W-2 to the Social Security Administration (SSA).

Information returns

• Form 1099-NEC: Nonemployee Compensation, Form 1099-NEC, is used to report nonemployee compensation of $600 or more paid to independent contractors, freelancers, or other self-employed individuals.

• Form 1099-MISC: Miscellaneous Information, Form 1099-MISC, is used to report miscellaneous income such as rents, royalties, prizes, and awards.

• Form 1096: Annual Summary and Transmittal of U.S. Information Returns, Form 1096, is used to summarize and transmit different types of 1099 forms to the IRS.

Other forms

• Form 720: Businesses that owe excise taxes file Form 720, Quarterly Federal Excise Tax Return, quarterly.

• Form 2553: Businesses use Form 2553, Election by a Small Business Corporation, to elect S corporation status.

• Form 7004: Businesses use Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns, to request an automatic 6-month extension of time to file their business tax returns. It’s important to note that this form only extends the deadline to file the paperwork, not the deadline to pay any taxes owed.

• Form 8832: Businesses use Form 8832, Entity Classification Election, to choose how their entity will be classified for federal income tax purposes.

Filing deadlines at a glance

Here are the filing deadlines to keep in mind.

Income tax forms

Income tax forms are used to report a business’s revenue, deductions, and tax liabilities. The correct form to use varies based on the business structure.

Sole proprietorships and single-member LLCs

Sole proprietorships and single-member LLCs file Schedule C, a form they attach to the individual’s Form 1040. It’s the primary tool for reporting business income and expenses.

• What it's for: It’s the primary tool for reporting business income and expenses.

• Who files it: Sole proprietorships and single-member LLCs.

• Components: It reports income (gross receipts or sales, returns and allowances, and cost of goods sold), expenses (deductible business expenses such as advertising, car and truck expenses, depreciation, insurance, legal and professional services, office expenses, rent or lease, supplies, taxes and licenses, travel, meals and entertainment, and utilities), and net profit or loss, which is then included in the individual’s total income on Form 1040.

• Deadline: Filed annually, attached to the individual tax return.

Partnerships

Partnerships file Form 1065, which provides an overview of the partnership’s financial performance for the year.

• What it's for: Provides an overview of the partnership’s financial performance for the year.

• Who files it: Partnerships.

• Components: It includes income (total income from operations and other income sources such as interest, dividends, or capital gains), deductions (allowable deductions including operating expenses, depreciation, and guaranteed payments to partners), and a Schedule K-1 for each partner (which reports their share of the partnership’s income, deductions, credits, and other items used by the partners to file their individual income tax returns).

• Deadline: Filed annually, generally by the 15th day of the 3rd month after the tax year ends.

C corporations

C corporations file Form 1120 to report income, calculate taxable income, and determine tax liability.

• What it's for: To report income, calculate taxable income, and determine tax liability.

• Who files it: C corporations.

• Components: It details income (from business operations, investments, and other sources), deductions (deductible expenses such as salaries, rent, depreciation, and interest), and tax credits (any tax credits for which they’re eligible, which can reduce overall tax liability).

• Deadline: Filed annually, generally by the 15th day of the 4th month after the tax year ends.

S corporations

S corporations file Form 1120-S to report their income and calculate any tax due on built-in gains or excess passive investment income.

• What it's for: To report their income and calculate any tax due on built-in gains or excess passive investment income.

• Who files it: S corporations.

• Components: The components are similar to those of Form 1120 but with differences specific to S corporations, and similar to partnerships, each shareholder also receives a Schedule K-1 detailing their share of the corporation’s income, deductions, credits, and other items.

• Deadline: Filed annually, generally by the 15th day of the 3rd month after the tax year ends.

Employment tax forms

Employment tax forms are used by employers to accurately report and pay taxes related to their employees’ wages and benefits. These forms encompass federal income tax withholding, Social Security, Medicare, and federal unemployment taxes.

Form 941

Form 941 is used to report withheld taxes to the IRS every quarter:

• What it's for: To report federal income tax withheld from employees’ wages, the employer’s and employees’ share of Social Security and Medicare taxes, and additional Medicare tax withheld from high-income employees.

• Who files it: Employers.

• Components: Its components include total wages paid, total income tax withheld, taxable Social Security and Medicare wages, Social Security and Medicare taxes owed, and adjustments for sick pay, tips, and group-term life insurance.

• Deadline: This form is filed quarterly, typically by the end of the month following the end of the quarter.

Form 940

Form 940 is used to report and pay FUTA tax, which funds unemployment benefits for eligible workers.

• What it's for: To report and pay FUTA tax, which funds unemployment benefits for eligible workers.

• Who files it: Employers.

• Components: Its components include total wages paid during the year, FUTA tax liability (calculated as a percentage of taxable wages), and any state unemployment taxes paid that can be credited against the FUTA tax.

• Deadline: This form is filed annually, typically by January 31 of the following year.

Form W-2

Form W-2 is provided to each employee and the SSA. It details the employee’s annual wages and the taxes withheld.

• What it's for: It details the employee’s annual wages and the taxes withheld.

• Who files it: Employers (provided to each employee and the SSA).

• Components: Its components include the employee’s personal information (name, address, Social Security number), the employer’s information, total wages earned, federal income tax withheld, Social Security and Medicare taxes withheld, and state and local taxes withheld, if applicable.

• Deadline: This form is issued to employees annually (by January 31 of the following year).

Form W-3

Form W-3 is used to summarize and transmit all W-2 forms to the SSA.

• What it's for: To summarize and transmit all W-2 forms to the SSA.

• Who files it: Employers.

• Components: Its components include employer’s information, the total number of W-2 forms being submitted, and the total wages, taxes, and other compensation reported on the W-2 forms.

• Deadline: This form is submitted annually (by January 31 of the following year), along with Copies A of all W-2 forms.

Other employment forms

• Form 944: The Employer’s Annual Federal Tax Return, Form 944, is used for small employers whose annual tax liability is $1,000 or less.

• Form 943: The Employer’s Annual Federal Tax Return for Agricultural Employees, Form 943, is used for employers of agricultural workers.

• Form CT-1: The Employer’s Annual Railroad Retirement Tax Return, Form CT-1, is used for railroad employers.

Estimated tax forms

Businesses are often required to make estimated tax payments throughout the year. This is common for businesses that are not subject to regular income tax withholding. Estimated tax payments help ensure the business pays the correct amount of tax on time and avoids potential penalties for underpayment.

The amount of estimated tax a business needs to pay depends on its expected income, deductions, and credits for the year. There are two main methods for calculating estimated tax payments:

• Prior year’s tax method: The simplest method, in which the business bases its payments on the tax liability from the previous year.

• Annualized income installment method: This method is more complex but can be beneficial if the business’s income fluctuates throughout the year. This method calculates estimated payments based on the actual income earned in each period.

Form 1040-ES

Form 1040-ES, Estimated Tax for Individuals, is the form used by sole proprietors, partners in partnerships, and S corporation shareholders to calculate and pay their estimated taxes.

• What it's for: To help individuals estimate their expected tax liability for the year and make quarterly payments to the IRS.

• Who files it: Sole proprietors, partners in partnerships, and S corporation shareholders.

• Components: Includes an estimated tax worksheet (which guides users through the calculation process, considering income, deductions, and credits) and payment vouchers included for each quarterly estimated tax payment.

• Deadline: It’s typically filed quarterly, with due dates on April 15, June 15, September 15, and January 15 of the following year.

Form 1120-W

Form 1120-W, Estimated Tax for Corporations, is designed for C corporations to calculate and pay their estimated taxes.

• What it's for: To calculate and pay estimated taxes, tailored for corporate tax calculations.

• Who files it: C corporations.

• Components: Includes an estimated tax worksheet (which helps corporations estimate their tax liability based on projected income and deductions) and payment vouchers included for each quarterly estimated tax payment.

• Deadline: Filed quarterly, with due dates on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. Note: The IRS imposes penalties if estimated tax payments are not made on time or are insufficient.

Self-employment tax forms

Self-employment tax forms are specific to individuals who work for themselves such as freelancers, independent contractors, sole proprietors, and partners in partnerships. These forms address the unique tax obligations that self-employed individuals have, primarily focusing on Social Security and Medicare taxes.

Schedule SE (Form 1040)

• Schedule SE (Form 1040), Self-Employment Tax, is used to calculate and report self-employment tax.

• What it's for: To calculate and report self-employment tax, determining the amount of Social Security and Medicare taxes due on self-employment income. This tax is the equivalent of the combined employer and employee contributions for traditional employees.

• Who files it: All individuals with net earnings from self-employment of $400 or more.

• Components: Includes net earnings from self-employment (calculated on Schedule C for sole proprietors or Schedule K-1 for partners), a deduction for one-half of self-employment tax (to help offset the fact that self-employed individuals pay the employer and employee portions), and a calculation of self-employment tax (which guides you through calculating the tax based on your net earnings and the applicable tax rates).

• Deadline: This form is filed annually with your Form 1040 individual tax return.

Schedule C (Form 1040)

Schedule C (Form 1040), Profit or Loss from Business, determines the net earnings from self-employment. Sole proprietors use this form to report income and expenses from their business activities. This form is filed annually with your Form 1040 individual tax return.

• What it's for: To determine the net earnings from self-employment.

• Who files it: Sole proprietors use this form to report income and expenses from their business activities.

• Components: Includes gross receipts or sales (total income generated by the business), cost of goods sold (direct costs associated with producing or acquiring goods sold), and expenses (deductible business expenses such as advertising, rent, supplies, and utilities).

• Deadline: This form is filed annually with your Form 1040 individual tax return.

Additional considerations

• Estimated taxes: Similar to other businesses, self-employed individuals might need to make estimated tax payments throughout the year to avoid underpayment penalties. This includes income tax and self-employment tax.

• Deductions for self-employed health insurance: Self-employed individuals can deduct premiums for health insurance for themselves, their spouse, and their dependents.

Excise tax documentation

Excise taxes are levied on specific goods, services, and activities. These taxes are paid by manufacturers, retailers, importers, or customers, depending on the nature of the taxed item. The IRS requires businesses to keep accurate records of all transactions related to excise taxes and retain these records for at least three years from the date the return was filed or the tax was paid, whichever is later. Failure to file excise tax returns on time or accurately report excise tax liabilities can result in penalties and interest charges.

Form 720

Form 720, the Quarterly Federal Excise Tax Return, is the primary form used by businesses to report and pay most federal excise taxes. The form is used to calculate and report excise tax liabilities quarterly and is typically filed by the end of the month following the end of the quarter. This form should be used by businesses that manufacture, sell, or use products or services subject to federal excise taxes.

• What it's for: To calculate, report, and pay most federal excise taxes.

• Who files it: Businesses that manufacture, sell, or use products or services subject to federal excise taxes.

• Components: Includes Part I (covers various excise taxes, such as those on fuel, environmental pollutants, air transportation, and certain communications services), Part II (reports one-time taxes, such as the heavy truck highway use tax), and Schedule A (provides a detailed breakdown of the excise tax liabilities).

• Deadline: The form is used to calculate and report excise tax liabilities quarterly and is typically filed by the end of the month following the end of the quarter.

Other excise tax forms

• Form 2290: The Heavy Highway Vehicle Use Tax Return, Form 2290, filed annually for vehicles with a gross weight of 55,000 pounds or more.

• Form 8849: The Claim for Refund of Excise Taxes, Form 8849, used to request refunds for overpaid excise taxes.

Businesses might need to maintain additional records to substantiate their excise tax calculations. This can include invoices, receipts, production records, and import/export documentation.

Best practices for managing tax forms as a business

Here are best practices to help you manage tax forms for your business:

• Use technology: Take advantage of accounting software tailored to your business’s size and industry. This technology can automate data entry, calculate taxes based on current laws, and record financial transactions accurately and in real time. Advanced systems can integrate with tax filing services, which reduces the likelihood of errors and the time spent on manual entries.

• Develop a tax calendar: A tax calendar helps keep track of different tax forms and their deadlines, preparation start dates, review periods, and actions required for each form. Set up alerts for these key dates so that nothing is overlooked.

• Maintain detailed records: Keep thorough, organized records of all transactions, receipts, previous tax returns, and relevant financial documents. Use digital storage solutions with encryption and easy retrieval, which can safeguard sensitive information and simplify the process of tax preparation and audit defense.

• Understand your obligations: Stay informed about the tax forms relevant to your business structure and industry. This involves federal and state requirements as well as potential liabilities for excise taxes, employment taxes, and other specialized taxes that might affect your business.

• Consult tax professionals: Consider working with a tax professional who’s familiar with your industry and business specifics. Regular consultations can help you work through complicated tax situations, improve tax positions, and get advice on potential tax incentives and credits. This relationship should be active throughout the year—not just at tax time—so strategies can be adjusted as laws and business conditions change.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful API.

Stripe Tax helps you monitor your obligations and alerts you when you exceed a tax registration threshold based on your Stripe transactions. It can also register to collect tax on your behalf in the US, automate US filings in the Dashboard, and manage global filings through trusted partners. Stripe Tax automatically calculates and collects sales tax, VAT, and GST on:

• Digital goods and services in all US states and over 100 countries
  
• Physical goods in all US states and 42 countries
  

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration, or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: If you need to register for a sales tax in the US, let Stripe manage your tax registrations. You’ll benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations. If you need help registering outside of the US, Stripe partners with Taxually to help you register with local tax authorities.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax automates US filings in the Dashboard, powered by TaxJar. For global filings, Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business. US tax filings can be automated in the Stripe Dashboard, powered by TaxJar.

Learn more about Stripe Tax, or get started today.