Business & Finance Taxes

How to Prepare Taxes for a Restaurant Owner

By Business & Finance Last updated Saturday, April/06/2024

1). Downloand the appropriate tax forms for reporting your restaurant's taxes on the Internal Revenue Services website. A sole proprietorship uses a 1040 Schedule C on your personal income tax. A partnership uses a Form 1065. A corporation uses a Form 1120.
2). Record your total revenues for the year. Keep accurate records of your restaurant's sales through your daily receipts. Your total revenues for the year will be the total sum of the entire year's daily receipts.
3). Deduct expenses, wages, and other allowable deductions from your revenues to find your net income. Allowable deductions from your revenues include payments to wait staff, purchases of furniture and cooking equipment, and other expenses to run your restaurant such as a home office.
4). Record all incoming tips to your servers. The total tips received by your staff must equal at least eight percent of your total receipts. You must make up the difference to your staff if it is less than eight percent.

Stay informed and read the latest news today from The ThatBiz Online, the definitive source for independent journalism from every corner of the globe.