Filing business taxes is indeed like solving a challenging puzzle. It’s tough but doable. Are you a small business owner in the US? Then, you might wonder: Can I file my business taxes without an accountant? The answer is yes, in many cases.
Going solo saves money and gives you more control. But it’s not always a walk in the park. Complex taxes or limited time can make DIY tricky. This blog explores when and how you can file business taxes on your own. Let’s understand the details of business taxes and see if you can skip hire an accountant in 2025!
Why Consider Filing Business Taxes Yourself?
Hiring an accountant costs money—sometimes hundreds or thousands. Filing business taxes yourself cuts that expense. It also helps you understand your finances better. But it takes time, effort, and a willingness to learn. Knowing the pros and cons helps you decide if DIY is right for your business taxes.
Save Money
Accountants charge for their expertise. DIY filing keeps those dollars in your pocket. You can use free tools or affordable software to handle business taxes.
Gain Control
Doing your own business taxes puts you in the driver’s seat. You track every deduction and form. This builds confidence in managing your business finances.
Learn Your Business
Filing business taxes teaches you about income, expenses, and tax rules. This knowledge helps you plan smarter for growth or savings.
When Can You File Business Taxes Without an Accountant?
Not every business is a good fit for DIY business taxes. Your business structure, income, and tax complexity matter. Here’s when going solo makes sense.
Simple Business Structures
Sole proprietors and single-member LLCs often have straightforward business taxes. You report income on Schedule C with your personal return (Form 1040). If you have few clients and basic deductions, DIY is manageable.
Low or Stable Income
Freelancers or side hustlers with steady, low income face simpler business taxes. Fewer transactions mean fewer forms. You can often use free IRS tools or basic software.
Organized Records
Got your receipts, invoices, and expenses sorted? Great! Organized records make DIY business taxes easier. Messy books, though, can trip you up.
Familiarity With Taxes
If you’ve filed personal taxes before, business taxes might feel familiar. Basic tax knowledge—like deductions or deadlines—gives you a head start.
When Should You Hire an Accountant?
DIY isn’t always the best choice. Some business taxes are too complex or risky to handle alone. Here’s when an accountant might be worth the cost.
Complex Business Structures
Partnerships, S corporations, or C corporations file separate returns (Forms 1065, 1120S, or 1120). These involve tricky rules. Mistakes can lead to audits or penalties.
Employees or Payroll
Payroll is very challenging for any organization. If you have employees, you deal with withholdings, unemployment taxes, and extra forms. An accountant ensures accuracy.
High or Variable Income
Big profits or multiple income streams complicate business taxes. You might miss deductions or miscalculate taxes. A pro spots savings and keeps you compliant.
Audits or Past Issues
Faced an IRS audit before? Got back taxes? An accountant can help you navigate these issues. They reduce risks and handle IRS communication.
Tools to File Business Taxes Yourself
You don’t need an accountant to file business taxes—modern tools make it easier. From free IRS programs to paid software, here’s what’s available.
IRS Free File
The IRS offers Free File for low to moderate-income businesses. It’s online software for sole proprietors filing Form 1040 and Schedule C. If your income qualifies, it’s a no-cost option.
Tax Software
Programs like The Fino Partners guide you through business taxes. They ask simple questions and fill out forms. Basic versions cost $20-$50; business versions run $100-$200. They’re great for sole proprietors or small LLCs.
Accounting Software
QuickBooks Online, track income and expenses year-round. They sync with tax software, making filing business taxes smoother. Monthly plans start at $15-$50.
IRS Forms and Resources
The IRS website has free forms like Schedule C, 1040, or 1065. Publications like 334 (Tax Guide for Small Business) explain rules. These are ideal for confident DIYers.
Steps to File Business Taxes Without an Accountant
Ready to tackle business taxes solo? Follow these steps to file accurately and on time. Preparation is key to avoiding mistakes.
Step 1: Gather Your Records
Collect all financial docs. This includes:
- Income records (1099s, invoices, bank statements).
- Expense receipts (office supplies, travel, utilities).
- Mileage logs for business travel.
- Home office details (square footage, utility bills).
Use apps like Expensify to organize digitally.
Step 2: Choose Your Filing Method
Pick a tool that fits your business taxes. Free File works for simple taxes. Software like Quickbooks Self-Employed handles Schedule C and deductions. Download IRS forms if you’re comfortable with manual filing.
Step 3: Understand Your Tax Forms
Know which forms apply:
- Sole proprietors/single-member LLCs: File Schedule C with Form 1040. Add Schedule SE for self-employment tax.
- Partnerships/multi-member LLCs: File Form 1065 and issue K-1s to partners.
- S corporations: File Form 1120S.
- C corporations: File Form 1120.
Check IRS instructions for each form.
Step 4: Track Deductions
Claim every deduction you qualify for. Common ones include:
- Home office expenses.
- Internet and phone bills.
- Marketing and advertising.
- Professional services (e.g., legal fees).
- Business travel and meals.
Software helps find these, but IRS Publication 535 lists them too.
Step 5: Calculate Quarterly Taxes
Most businesses pay quarterly estimated taxes (due April 15, June 15, September 15, January 15). Use Form 1040-ES to estimate. Paying on time avoids penalties.
Step 6: File by the Deadline
Deadlines depend on your structure:
- Sole proprietors: April 15.
- Partnerships/S corps: March 15.
- C corps: April 15.
E-file through software or IRS Free File for speed. Mail paper returns if needed, but allow extra time.
Step 7: Keep Records
Save copies of your filed business taxes and supporting docs. Store them for at least three years. This protects you if the IRS questions your return.
Tips to Make DIY Business Taxes Easier
Filing business taxes without an accountant takes effort. These tips keep you organized and confident.
Start Early
Don’t wait until March. Begin in January. Early filing gives you time to fix errors or gather missing records.
Use a Checklist
Create a tax prep checklist. Include forms, deadlines, and deductions. Cross off tasks as you go. This keeps business taxes manageable.
Double-Check Your Work
Errors trigger penalties. Review your math. Ensure forms match your records. Software catches mistakes, but manual filers should be extra careful.
Leverage Free Resources
IRS.gov has guides, FAQs, and live chat. Local SBA offices offer tax workshops. Volunteer Income Tax Assistance (VITA) provides free help for small businesses.
Stay Consistent
Track income and expenses monthly. Use the same system (e.g., spreadsheet or app) all year. This makes filing business taxes faster.
Risks of Filing Business Taxes Yourself
DIY business taxes save money but come with pitfalls. Knowing the risks helps you decide if going solo is smart.
Missing Deductions
Amateurs often skip deductions. This raises your tax bill. An accountant might spot write-offs you didn’t know existed.
Errors and Audits
Mistakes on forms or math can flag your return. The IRS might audit you, demanding time and records. Errors also lead to penalties.
Time Drain
Filing business taxes takes hours or days. If you’re busy running a business, this cuts into productive time. Weigh the trade-off.
Complex Taxes
Partnerships, corporations, or payroll taxes are tough. DIY errors here can cost more to fix than an accountant’s fee.
When to Get Help?
Even if you want to DIY, some situations call for help. A tax pro or software can bridge gaps without breaking the bank.
Try Software First
If business taxes feel overwhelming, start with software. It’s cheaper than an accountant and handles most small business needs.
Consult for Complex Issues
Got payroll or multi-state taxes? Consult a pro for those parts. You can still file the rest yourself to save money.
Hire for Peace of Mind
If business taxes stress you out, an accountant is worth it. They handle everything, letting you focus on your business.
Also Read | How to Hire the Best Accountant for Taxes: A Comprehensive Guide
Final Thoughts
Filing business taxes without an accountant is like baking a cake from scratch—challenging but rewarding if you follow the recipe. Sole proprietors with simple setups can often handle business taxes using free tools or software. Partnerships, corporations, or payroll taxes might need extra help. Stay organized, claim deductions, and file on time to avoid trouble. If business taxes feel too big, software or a quick consult with a pro can keep you on track. You’ve got this! Ready to file your business taxes in 2025? Grab your records, pick your tool, and make tax season a breeze with The Fino Partners!
