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2003 SSBF: Methodology Appendix BB Screen Reader version

Appendix BB

Worksheet Mailing: Organizational-Type-Unknown Letter

Dear Small Business Owner,

During our initial call, we were unable to determine how your business is organized for tax purposes, that is, whether it is a sole proprietorship, a partnership, a C-corporation, or an S-corporation. We are including a worksheet for each organization type in this package. Please select the one worksheet that is appropriate for your business and discard the other three. Refer to the information below for help if necessary.

Sole Proprietorship 1040 or 1040 EZ An unincorporated business owned by a single person, who has the right to all the profits from the business and is responsible for all the business's liabilities.
Partnership 1065 An unincorporated business in which two or more owners agree to split the profits, losses, or capital of the business. There may be limited and/or general partners.
C-Corporation 1120 or 1120-A A business that has been granted a state charter recognizing it as a separate legal entity having its own rights, privileges, and liabilities distinct from those of the individuals that form the business.
S-Corporation 1120-S A business that does not pay taxes on its income because its shareholders are responsible for paying taxes on the business's income. To qualify for S-Corporation status, the business
  • must be a U.S. corporation,
  • must have only one class of stock and no more than 75 shareholders, and
  • may not have certain organizations or non-U.S. citizens as shareholders

If your business is a Limited Liability Partnership (LLP) or Limited Liability Company (LLC), please base your worksheet selection on whether you file taxes as a partnership, a corporation, or a sole proprietor.

This version is optimized for use by screen readers. Descriptions for all mathematical expressions are provided in LaTex format. A printable pdf version is available. Return to Text