Guide to Completing Your 2025 Business Tax Return with Collective

Note: Collective supports two membership tiers with different federal tax filing requirements.

LLC Tier: You file as a single-member LLC using Form 1040 with Schedule C. Your business activity and personal income are reported together in a single filing due April 15th.

S Corp Tier: You have two separate filings. Your business tax return (Form 1120-S) is due first on March 15th. This filing generates your Schedule K-1, which you then use to complete your personal income tax filing (Form 1040) by April 15th.

As an S Corp, completing your business tax return is a key step in keeping your S Corp status compliant and your filings in good standing. Your business tax return (Form 1120-S) will generate a form (Schedule K-1) for use in your individual tax return. This form acts as the bridge to your personal taxes, meaning the business return must be filed before you can finalize your individual 1040.

This guide walks you through the 2025 Business Tax Return (BTR) flow in your Collective dashboard, helping you understand what information is needed and why it matters for your S Corp. For Collective members, the 2025 Business Tax experience launches mid-January 2026.

Why This Matters

Your business tax return is more than just a filing; it’s a unified view of your company's financial health. Providing accurate information here helps our tax professionals optimize your return and ensures you stay in good standing with the IRS and state agencies. Your business tax return needs to be filed before your individual tax return.

There are 4 key steps to preparing and filing your return:

1. Make sure your information is up to date: Confirming your details ensures your return is accurate from the start.
2. Answer a few questions about your business in 2025: Tell us about your operations, contractors, and retirement contributions.
3. Preparation: Our team will use this information to prepare your draft business tax return.

4. Review, Approve, and Sign: Once the draft is ready, you will review it, approve the details, and sign so we can file it for you.

   

Key Filing Dates for 2026

Staying on top of filing deadlines is essential for maintaining your business in good standing and avoiding unnecessary stress. Meeting these dates ensures your S Corp remains compliant with federal requirements and helps you plan your cash flow effectively throughout the year.

Filing Deadlines

For S Corp tier members, your business tax return (Form 1120-S) is included in your membership. To ensure a smooth filing process, please keep these critical dates in mind:

• February 13, 2026: This is the last day to submit your completed organizer, all required documents, and your financials approval to the Collective team.
• March 13, 2026: The last day to approve your draft return for filing to meet the standard deadline.
• March 16, 2026: This is the official filing deadline and the date any associated payments are due (even if you’ve filed for an extension any balance due is still due at this time).

Extension Filing Deadlines

If you have filed for any extension, any taxes due are still due by March 16, 2026. In addition, these are the secondary dates you need to track. 

• August 14, 2026: The last day to submit your completed organizer, documents and final  financials approval.
• September 11, 2026: The final date to approve your draft return for filing before the extension deadline.
• September 15, 2026: The official extension filing deadline.

Understanding the Timeline

Once you submit your organizer and documents, our team begins a multi-stage review:

1. Screen: We check your organizer, documents, and financials for completeness.
   1. You will need to review and approve your end of year financials before the team can start the next stage.
   2. Our team will reach out with any questions on your submitted information.
2. Preparation: Tax professionals input your data into the return.
3. Review: A second team reviews the return for accuracy and optimization.
4. Draft: We share a draft return with you for approval.

How long does it take? If your bookkeeping is complete and no follow-up information is needed, the process usually takes 4 weeks. If you request changes to your financials after the return has started, it may take longer as we must re-reconcile your books and re-review the tax data.

After Filing: Refunds and Notices

• Refunds: Any tax refund comes directly from the government, not Collective. Most refunds are processed within 21 days, but you can check your status on state websites. Collective is unable to expedite your refunds nor contact a tax authority to check on the status of a refund.
• Tax Notices: If you receive a notice from the IRS or a state agency, do not worry. Simply upload a copy to your Collective dashboard and message your team. We are here to help you navigate next steps.

2025 Walkthrough of the Business Tax Return Organizer

Step 1: Confirming Business Details

In the first part of the flow, you will verify the core identity of your business.

• Business Name: If you have changed your business name or established a DBA, please provide documentation to Collective so we can update your records.
• Physical Address: The IRS requires a physical address for your business. While you can use a P.O. Box for marketing, you must provide a residential or office address for tax purposes.
• NAICS Code: This is an industry code that tells the IRS what type of business you operate. In most cases, there is no direct impact on your tax return if several codes seem similar; simply pick the one that most closely aligns with your primary business activity.

Step 2: Ownership and Shareholders

Collective’s S Corp tier is specifically designed for solopreneurs.

• 100% Ownership: To maintain your Collective membership, you must remain the 100% owner of your S Corp.
• Adding Shareholders: Currently, Collective only supports single-shareholder S Corps, with exception only for a spouse who may be recognized as a shareholder by operation of your state’s community property law.

Step 3: State Activity

Why your physical location matters

We need to know where you were physically located while generating revenue in 2025 to understand your business presence in a state. This helps us better understand your state tax compliance needs and helps ensure accuracy on state tax filings. Checking an email while on vacation for an hour typically doesn’t count as doing business in another state. However, if you traveled specifically for client work or worked remotely for an extended period, you should select "Yes."

Identifying client locations

Determining where your clients are located is another key factor in state compliance. If you work with a company that has multiple locations, you can generally determine their location by looking at:

• The location of your primary point of contact.
• Where your final deliverable was sent.
• The billing address used on your invoice.

If you aren't sure where your clients are located, provide as much information as possible, and our team will help determine the best next steps for compliance.

Step 4: Contractors and 1099s

If you paid non-employees $600 or more during the year (2025), you may need to issue a 1099.

• Payment Methods: Generally, payments made via credit card, PayPal, or Business Venmo do not require you to issue a 1099, as the payment processor handles that reporting.
• Zelle and Cash: Payments made via Zelle, check, or cash do require a 1099 if they meet the $600 threshold.
• Entity Type: You typically need to issue 1099s to individuals, single-member LLCs, and partnerships. You generally do not need to issue them to other S Corps or C Corps.

Step 5: Retirement and Credits

• Employer Contributions: This section refers to contributions your business made to a Solo 401k,SEP IRA, or other eligible retirement plans. This does not include personal IRAs or pensions.
• Contribution Limits: In most cases, you can contribute up to 25% of your W-2 income as an employer contribution. These should be made from your business bank account.
• R&D Credit Study: If your business is involved in product development or software design, you might qualify for research and development credits. Please note: Choosing to pursue an R&D study will likely extend the timeline for your tax return.

Disclaimer: This content is for informational purposes only and is not legal, financial, or tax advice.