How to calculate your gross receipts

To calculate your gross receipts in order to renew your business tax certificate (business license) you will use this formula:

Your total revenue for the previous year

- minus any business rent paid

- minus any contractor payments/outside services/officer salaries

Equals = Your gross receipts

Here is how you can find that on your tax return, by type:

• Schedule C (Sole proprietor, single member LLC)

  Part 1, Line 3 (Your gross income)

  MINUS -

  Part 2, Line 11 (Contract labor)

  Part 2, Line 20b (Other business property)

  EQUALS = Your gross receipts

• S-Corp (1120S)

  Income Section, Line 6 (Your total income)

  MINUS -

  Deductions Section, Line 7 (Officer compensation)

  Deductions Section, Line 8 (Salaries and wages)

  Deductions Section, Line 11 (Rents)

  From Line 19, please review the statement number and look for any Independent Contractors and/or Outside Services and subtract that amount as well

  EQUALS = Your gross receipts

• C-Corp (1120)

  Income Section, Line 11 (Your total income)

  MINUS -

  Deductions Section, Line 12 (Compensation of officers)

  Deductions Section, Line 13 (Salaries and wages)

  Deductions Section, Line 16 (Rents)

  From Line 26, look for any Independent Contractors and/or Outside Services and subtract that amount as well

  EQUALS = Your gross receipts

• Partnership (1065)

  Income Section, Line 8 (Your total income)

  MINUS -

  Deductions Section, Line 9 (Salaries and wages)

  Deductions Section, Line 10 (Guaranteed payments to partners)

  Deductions Section, Line 13 (Rent)

  From line 21, look for any Independent Contractors and/or Outside Services and subtract that amount as well

  EQUALS = Your gross receipts