Should You File Your Own Business Taxes?
For many small business owners, tax time brings a big question:
Should I file my own business taxes, or hire a professional?
There’s no one-size-fits-all answer — but there are clear signs for when DIY might be okay… and when it can cost you more than it saves.
Let’s break it down.
✅ When It Might Make Sense to File Your Own Business Taxes
Filing your own taxes could be a reasonable option if all of the following are true:
• You’re a sole proprietor or single-member LLC
You’re reporting your business on a Schedule C as part of your personal 1040 return, with no need for a separate business return.
• Your business is very simple
You have minimal income and expenses, no employees or contractors, no inventory, no depreciation, and no business-use asset purchases.
• You’re comfortable using tax software
Tools like TurboTax or TaxAct are relatively user-friendly, and if you have the time and patience, you may be able to get it done without help.
• You don’t need tax planning or strategic advice
If your goal is simply to “file and be done” with a basic return, and you’re not optimizing for tax savings, retirement, or growth — DIY could suffice.
• You’re organized and confident in your bookkeeping
Clean, categorized records — not shoeboxes of receipts — are a must. Garbage in = garbage out.
⚠️ When You Should Not File Your Own Business Taxes
Even if you can file your own taxes, it doesn’t always mean you should. Here are the biggest red flags that signal it’s time to work with a CPA or tax professional:
❌ You’re an S Corporation, Partnership, or Multi-Member LLC
These entities require separate business tax returns (Form 1120-S, 1065, etc.) and K-1s for owners.
💼 Filing incorrectly or late can result in steep penalties — even if you owe no tax.
❌ You Have Employees or Contractors
Payroll tax filings, W-2s, 1099-NECs, and compliance with IRS and state deadlines add a whole new layer of complexity.
❌ Your Business Has Inventory, Equipment, or Depreciation
If you carry stock, lease or own equipment, or take Section 179/bonus depreciation, the rules get technical fast. DIY software may not handle these properly — and errors can trigger audits.
❌ You Plan to Sell Your Business, Add a Partner, or Restructure
How you file impacts your basis, future capital gains, and legal structure. You don’t want to guess when these decisions could cost you thousands later.
❌ You Want to Reduce Your Tax Liability Strategically
If you're trying to maximize deductions, take advantage of pass-through entity elections (like PTET), or make retirement plan contributions — you need planning, not just filing.
❌ You’ve Had a Major Change
Started a new business? Added a new service? Bought or sold assets? Took a PPP or ERC credit? These events all have tax consequences that DIY tools may miss or misapply.
Common Mistakes We See from DIY Filers:
Missing qualified deductions (like home office, mileage, startup costs)
Not filing required state or local returns
Underpaying or missing estimated tax payments
Misclassifying contractors vs employees
Filing incorrect forms for their business structure
Not keeping proper documentation for deductions taken
The Real Value of Hiring a CPA
A CPA doesn’t just “fill out forms.” We help you:
Stay compliant with federal and state tax laws
Avoid penalties and audits
Maximize legal deductions
Plan ahead for retirement, growth, and cash flow
Keep clean books and records year-round
For most small businesses, hiring a tax professional isn’t just a convenience — it’s a smart investment.
Bottom Line: DIY When It’s Simple. Hire a Pro When It’s Not.
If you’re running a true side hustle or just getting started with low risk, filing on your own might be fine.
But once you have revenue, growth, or complexity — or if you just want peace of mind — working with a CPA is the smarter, safer move.
Ready to take taxes off your plate?
At Dishion & Associates, we help small business owners file accurately, reduce their tax burden, and plan smarter for the future. Let’s talk.
