How To File Business Taxes for Free Online

Filing business taxes for free online, is efficient and reduces overall paper usage. Organize records in the same way that organization and preparation must occur for filing when using paper forms. Allow time to read instructions and scenarios offered from the online filing service before completing the sections. Log in and log out as necessary to complete the tax return, then review before submitting electronically

Instructions

Things You'll Need:

• Bank statements
• Income and expense records
• Tax deductions, personal and corporate
• Social security number or employer identification number
• Desktop or laptop computer
• Internet connection

Filing Online

1. Step 1

   Set up a chart of your accounts and define the accounts as needed. Author Robert Low writes in the book, Accounting and Finance for Small Business Made Easy, "Your accounts should be sufficiently detailed to allow reporting by each significant entity." Organize bank statements by month.

2. Step 2

   Collect all paper receipts, then enter the information at least, weekly in an accounting system. Keep a log of miles driven, and total the miles driven monthly and annually to prepare for filing taxes online.

3. Step 3

   Select an online service to file business taxes for free by using search engines or the irs.gov website. A consultant who provides financial business services for small companies, Seth David of Nerd Enterprises in Burbank, California advises companies that not all online business tax vendors are free services, and he recommends choosing carefully.

4. Step 4

   Create a user name and password to log on to a site for filing business taxes. Select the "free option" for filing a federal return. Follow the step-by-step instructions to complete specific forms. Use paper forms and statements as worksheets if necessary, then transfer the information to the online return. Refer to the chart of accounts in your business accounting software and mileage log for totals such as driving mileage. Remain confident since, according to the IRS, "The error rate on an e-file return is less than 1%." Have an employer identification number or social security number available. Log out and then log back in to continue working on the return until it is completed.

5. Step 5

   Log on to the state website where the business is located for information on the types of taxes that may be filed electronically at the state level. Check with a department of revenue or tax board in specific states. Find the list of forms that have e-file capabilities. Determine whether monthly, quarterly, or annually filing is appropriate. Pay taxes online as needed using check and routing numbers, or credit card.