Partnership and Ownership Details
If your business has multiple owners, you'll need:
• Partner information (names, addresses, SSNs, ownership percentages)
• Capital contributions and withdrawals
• Guaranteed payments to partners
• Any ownership changes during the tax year
State and Local Tax Considerations
Multi-state operations add complexity, but don't panic:
• State tax ID numbers for each jurisdiction
• Nexus determinations (where you're required to file)
• State estimated tax payments made during the year
• Local business licenses and tax payments
Common Mistakes That Cost Business Owners Big
Learn from others' expensive mistakes:
The "Shoebox Method" Disaster
Mistake: Keeping all receipts in one place without organization
Solution: Use accounting software or apps like QuickBooks to categorize expenses as they happen
Missing the Mixed-Use Asset Trap
Mistake: Claiming 100% business use on assets used personally
Solution: Keep detailed logs showing actual business use percentage
The Estimated Tax Payment Fumble
Mistake: Skipping quarterly payments and getting hit with penalties
Solution: Set up automatic transfers to a tax savings account
Record Retention Oversight
Mistake: Throwing away important documents too early
Solution: Keep business records for at least 7 years (longer for some items)