When it comes to federal income tax, USA citizens tend to look upon April with dread. Yet with a little preparation and understanding of the system, federal income tax filing needn't be stressful. How to file and what to pay varies from business to business, but armed with a little knowledge, you can file the appropriate forms in no time.

When looking at federal income tax basics, there are three main categories all business owners should consider. These are:

1. Knowing which taxes to pay and which federal income tax forms to fill out,

2. Filing you business' federal income tax information yourself,

3. And hiring a tax professional to fill out your 1040 tax form and other business forms.

Action Steps
The best contacts and resources to help you get it done

Match your business to the correct federal income tax form

There are four basic types of taxes businesses pay: income tax, self-employment tax, employment taxes and excise tax. All businesses (except partnerships) must pay yearly income taxes, but different forms are required depending upon your specific business. Self-employment tax pays for social security and Medicare for those who work for themselves, and you must pay employment tax if you have any employees. Excise tax is applicable if you sell or manufacture certain products, operate specific kinds of business or use some specific types of facilities, equipment or products.

I recommend: The IRS offers a great many federal income tax articles geared toward businesses; see their "Business Taxes" page for complete information about what types of businesses must use certain tax forms. "Income Tax Basics for Your Startup" at Entrepreneur.com is another good starting point for learning what type of taxes you will need to pay.

File your federal income tax return yourself

These days, you don't have to be a tax expert to file your own federal 1040 form. There are many excellent tax programs available for small businesses that practically do all the work for you. Choose a reliable piece of software, answer the question prompts carefully, and you can prepare your own taxes with relative ease.

I recommend: TurboTax, popular software from Intuit, offers a small business version that makes preparing your own taxes a cinch. For good information on preparing your own business taxes, visit BusinessTaxRecovery.com.

Hire a pro to file your federal business income tax

If you have never filed business taxes before, it makes sense to consult a professional tax preparer at least once. Certain types of businesses may be so complicated, in tax terms, that it makes sense to hire a professional every year. Or if you simply don't want to spend your own time preparing your federal income tax 1040, hiring someone well-versed in the tax code also makes sense.

I recommend: Nolo offers good advice on who to hire to prepare your business taxes, as does The Motley Fool.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you loath your basic 1040 filing because you tend to keep poor records, hire a tax professional to help you set up a record keeping system that's suited not only to your business, but also your personality.

As the April 15 deadline draws near, millions of Americans scramble to complete a federal income tax return in the coming days. Federal business income tax is also due, so many small business owners will need to complete federal income tax forms as well. The good news is that plenty of helpful federal income tax information, including tips and tricks to fast federal income tax filing, is available online.

Federal income tax filing no longer needs to be a fearsome or tedious task. Numerous federal income tax articles are available to assist you with your US income tax return. Depending on how you have set up your business, the IRS requires you to file certain federal income tax USA forms. You will need:

1. A federal 1040 Tax Form and Schedule C or C-EZ if you have a sole proprietorship.

2. A federal 1040 Form and Schedule E if you are a partner in a partnership.

3. A federal 1040 Form and Schedule E if you are an S corporation shareholder, as well as an 1120S for the S corporation itself or an 1120-A for a regular corporation.

Action Steps
The best contacts and resources to help you get it done

Find your 1040 tax form

Online resources will help guide you to which form(s) you must file to complete your federal income tax USA obligations. You can also find general federal business income tax information, including the instructions associated with each form and links to helpful references.

I recommend: Find your federal income tax forms at the very comprehensive and user-friendly IRS website. Besides, it's hard to go wrong when you start right at the source.

Figure your federal income tax

The days of pencil-pushing, paper-shuffling, and old school calculators are over. You can now use the robust tools provided by one of the many online tax preparation software options to figure your US income tax quickly, accurately and almost effortlessly.

I recommend: My favorite site for preparing any 1040 filing is TaxACT. The site automatically flags potential problems that the IRS might find with your tax return, and it also provides general federal income tax information to assist you in every step of the filing process.

File your federal income tax form

E-filing is an attractive option these days. Not only do you save a stamp, but if you have any money coming back, you will receive it much faster. On the other hand, if you have to pay, you can pay by credit card in order to take advantage of points, miles or any other perks you get with you card.

I recommend: Most of the online tax preparation sites offer an online payment option. However, if they don't (or if you filed a paper form), American Express and Visa both have solutions to assist you.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Almost all of the tax preparation sites will figure your federal income tax for free and then allow you to choose whether or not to actually file the forms. Sometimes subtle differences in the tools and tips provided in them lead to different tax outcomes. Therefore, before submitting your 1040 filing, you should run it through at least 2 programs to make sure that you have not missed any deductions or credits.

Just as individuals need to file a federal income tax, businesses need to as well. Most of the time they file a Federal 1040 tax form just as individuals do, but usually with additional forms to file. However, tax preparation can be as easy for businesses as it is for an individual with the help of a tax professional or tax preparation software.

Learn the types of taxes you may need to pay on your business. Although the basic types include income tax, employment tax, excise tax and self-employment tax, you may not be responsible for all of these. Be sure to account for the deductions and depreciation you can take for your business. Also, don’t forget to take any tax credits you’re entitled to, since this can greatly reduce what you owe.

Action Steps
The best contacts and resources to help you get it done

Federal 1040 tax forms

Federal 1040 tax forms may include a schedule C if you're a sole proprietor, or a schedule E if you're a partnership. There are some other forms if you're a corporation. There are many resources that can help you figure out which forms you need.

I recommend: The Internal Revenue Service (IRS) has a tax form resource page.

Tax preparation

These days, it's easy to get a tax software package to prepare your income taxes. These packages make it easy to do your own taxes. If you're still worried about the outcome, you can hire someone to prepare your taxes for you.

I recommend: TurboTax is an excellent tax preparation software package you use for both personal and business use. The business edition is an extension of the personal version; if you have used TurboTax for personal use it’s easy to make the switch to the business version. Use Nolo for guidance on hiring a tax business professional.

E-filing

E-filing is easy to do, and you'll get a refund from the IRS much faster. However, if you have to pay, you may want to submit your taxes the old-fashioned way -- with an envelope and stamp -- to slow the process down.

I recommend: The Wall Street Journal has a great article on e-filing that explains why you should do it.

Income tax, employment tax, excise tax and self-employment tax

These are the four basic taxes a business needs to pay. All businesses except a partnership should file an annual income tax return. Employment tax applies if you have employees; excise tax may be necessary, depending on your type of business; and self-employment tax pays for Medicare and Social Security.

I recommend: The IRS explains each of each of these taxes and the forms you'll need to file them.

Deductions and depreciation

Deductions are legitimate business expenses that you can deduct from your gross income. Depreciation is a legitimate business expense that you take for equipment and furniture used in your business.

I recommend: Entrepreneur.com explains deductions and depreciation, and why you may not want to take certain deductions or use all the depreciation you are entitled to in the same year.

Tax credits

Tax credits, unlike deductions, come right off the amount of tax you have to pay. You need to make sure you take every tax credit you're entitled to in order to pay the least amount of tax.

I recommend: BusinessTaxRecovery.com gives links to articles about tax credits. The page is updated frequently to keep you on top of the credits you can take.