Overview

In year one, new business owners must both register for tax accounts and file periodic returns. Start by getting an Employer Identification Number (EIN) if you hire employees, form a partnership or corporation, or prefer not to use your SSN for business purposes (apply with Form SS‑4). For filing deadlines, payroll returns are usually quarterly or semiweekly, while income tax returns are typically annual. Always confirm state and local tax requirements in addition to federal obligations (IRS: Small Business & Self‑Employed).

Core federal forms you’ll likely encounter

  • EIN (Form SS‑4): Obtain an EIN to open business bank accounts, file payroll taxes, and avoid using your SSN. Apply online at the IRS. (IRS)
  • Form 1040 + Schedule C: Sole proprietors report business profit or loss on Schedule C attached to Form 1040. Use Schedule C to claim ordinary and necessary business expenses.
  • Form 1065 + K‑1: Partnerships file Form 1065; each partner receives a Schedule K‑1 showing share of income, deductions, and credits.
  • Form 1120 / Form 1120‑S: Corporations file Form 1120 (C corporations) or Form 1120‑S (S corporations); S‑corps issue Schedule K‑1 to shareholders.
  • Form 1099‑NEC: Report nonemployee compensation of $600 or more to contractors and the IRS (check current IRS guidance for thresholds and timing).
  • Form 1099‑K: Payment processors may issue 1099‑K. Reporting thresholds and rules have changed recently—verify the current IRS rule for your tax year.

Employment and payroll forms

  • Form W‑2 and Form W‑3: Employers must prepare W‑2s for employees and submit W‑3 as a transmittal to the SSA each year.
  • Form 941 (quarterly): Employer’s Quarterly Federal Tax Return for income tax withholding and employer/employee Social Security and Medicare taxes. See our detailed guide on filing Form 941.
  • Form 940 (annual): Employer’s Annual Federal Unemployment (FUTA) Tax Return.
  • State payroll tax forms and deposit schedules: States have separate withholding, unemployment and employer registration rules—register early.

When each return is due (common schedules)

  • Quarterly payroll: Form 941 due the last day of the month following the quarter (confirm current IRS schedule and deposit rules).
  • Annual income tax: Individual returns (Form 1040 + schedules) due April 15 (or the next business day if a weekend/holiday); corporate return deadlines differ by tax year and entity type.
  • 1099‑NEC: Generally due to recipients and the IRS by January 31 for the prior calendar year. Confirm specifics each tax season.

Practical examples and common first‑year pitfalls

  • Misclassification of workers: Treating employees as independent contractors to avoid payroll taxes triggers audits and penalties. Properly classify workers using IRS guidance and, when in doubt, consult a CPA.
  • Wrong entity filings: Changing or misselecting your business entity (sole proprietor vs partnership vs S‑corp) can lead to incorrect returns. If you’re unsure, review our guide on choosing the correct business tax form.
  • Missing payment‑processor reporting: Marketplace or payment apps may send 1099‑K forms you didn’t expect—track gross receipts from every source.

Quick checklist for year one

  1. Apply for an EIN (SS‑4) if needed.
  2. Choose the correct federal tax return based on entity type (Schedule C, 1065, 1120, or 1120‑S).
  3. If you hire: set up payroll, deposit schedules, and register for state withholding and unemployment.
  4. Track contractor payments and issue 1099‑NEC as required.
  5. Keep clear accounting records and use accounting software to generate reports and required forms.

Further reading and internal resources

  • Filing Schedule C for sole proprietors: tips and common pitfalls — FinHelp (filing Schedule C for sole proprietors: Tips and Pitfalls).
  • How to file Form 941 for small employers — FinHelp (How to File Form 941 for Small Employers).
  • Small business filing checklist: forms many owners forget — FinHelp (Small Business Filing Checklist: Forms Many Owners Forget).

Authoritative sources

Professional tips

  • Start bookkeeping on day one: good records prevent missed deductions and make form preparation simple.
  • Automate payroll and 1099 reporting with trusted software to reduce mistakes and meet deposit schedules.
  • Get a short consult with a CPA in your first 12 months — a small upfront cost often prevents larger tax bills later.

Common mistakes to avoid

  • Using personal bank accounts for business income and expenses.
  • Failing to register for state employer accounts before making payroll payments.
  • Ignoring 1099‑K/1099‑NEC reporting differences and thresholds.

Disclaimer

This article provides general information about common federal forms new small businesses encounter. It is not legal or tax advice. For advice specific to your situation, consult a licensed CPA or tax attorney. IRS rules change; confirm deadlines and thresholds on IRS.gov before filing.