Deadlines for Your Small Business Before the 2023 Tax Deadline
Small business entrepreneurs choose limited liability organizations since they’re simple to set up and protect your assets. Even while they can be simple, during tax deadline season they get a little more complex.
LLCs are no different from other small businesses in that they must deal with taxes and file returns with the Internal Revenue Service. To maintain your business compliantly and avoid penalties, you must be aware of what to do and when. However, this is sometimes easier said than done.
Main Filing Deadline
Every year, April 15 is the IRS tax deadline for filing personal tax returns. Your tax return is due on the next business day. Especially if the 15th falls on a weekend or holiday. Your 2023 filing is therefore due on Tuesday, April 18.
Your return will still be due on that day, no matter how things are going in your firm. However, depending on your fiscal year and the IRS filing method you choose, the deadline for your small business LLC may change. While others won’t, some LLCs will need to file a separate return for their firm.
Why Is This So Complicated, and What Is an LLC?
It’s crucial to comprehend why determining your deadline is a challenging task before moving on. An LLC is a versatile corporate structure created at the state level. States permit people to set up an LLC to segregate their assets and identities from the company entity if they meet certain requirements.
On the federal level, an LLC does not, however, have a unique tax procedure. The IRS does not consider an LLC to be a type of business. This implies that each LLC has the option to select the method they wish to use for their federal income tax. LLCs can choose to classify themselves as one of the following using IRS form 8832:
- C Corporation
- S Corporation
- Sole Proprietorship
Taxes for LLCs Are Due When?
Due to the pay-as-you-go nature of the federal income tax in the United States, payments should be made annually. Well in advance of the filing deadline. Your projected tax payments are due shortly after the end of each quarter and are calculated based on an estimate of your overall tax liability. Following the calendar year, the quarterly due dates for an LLC are as follows:
- Term 1 is due on April 15 Term 2 is due on June 15
- Third quarter due on September 15
- By January 15 of the following year, quarter 4 is due.
Let’s say you’ve been paying anticipated taxes by these deadlines since 2022. The last step is to file a return detailing all of those payments and calculate your remaining tax liability. So, when must LLC taxes be submitted to the IRS?
Information on Corporate Taxes
C corporations are taxed separately from you as an individual and are treated as such. Because they are subject to double taxation, the corporation is responsible for filing and paying the business income tax. Taxes on the income are also paid and reported by individual business owners on their tax forms.
You must submit IRS forms 1020 and 1120 for your personal and company tax returns, respectively. Be aware that compared to other business entities, corporations frequently require more detailed reporting on tax forms. The good news is that since you will be both an employee and a shareholder of the firm, you won’t have to pay self-employment taxes.
Making an S Corporation Filing
A smaller corporation can apply for S corporation status by filing IRS form 2553. Your LLC tax filing date for the calendar year will be March 15, 2023. Especially if your LLC is eligible and files form 2553 on time. Your business return is due on the 15th day of the third month following the conclusion of an alternate fiscal year.
Tax form 1120-S will be used for your March 15 filing. This return is informative, as opposed to the C company return. The IRS receives your profit and spending reports, but it does not directly tax your company.
S corporations are pass-through entities, which means that their income is not taxed and instead is distributed to the business owners for their tax reporting and payment.
Schedule K-1, which details the distribution of corporate income among LLC members, must be filed with Form 1120-S. Then, each participant will submit their individual form 1020.
Making a Partnership Filing (Multi-Member)
The IRS won’t recognize your company as a taxable entity separate from its members if you don’t file as a corporation. If your LLC has numerous members, it will be taxed as a partnership.
The method will be fairly similar to that of S corporations, and the deadline for partnership LLC tax filings is March 15, 2023. By the multi-member LLC tax filing deadline, you must submit schedule K-1 and form 1065 as an informative return. Then, in April, each member will file tax returns and pay taxes on their portion of the LLC’s income.
Making a Sole Proprietorship Filing (Single Member)
You may be taxed as a single proprietorship if you are the only member of an LLC and do not file as a corporation. By April 18, 2023, single-member LLC tax filings must be made.
You will use Schedule C on your personal 1040 tax return to include all pertinent business information rather than submitting a separate return for your company.
How a Small Business Owner Files a Tax Extension
If you need extra time to finish your tax return, you can file for an extension. You can request a tax extension with the IRS online. Or by mail using form 4868 at any time before the due date for your tax return, which will provide you an additional six months without incurring any penalties.
For original April deadlines or extended March deadlines, your LLC tax extension due will be October 17, 2023, or September 15, 2023, respectively.
It’s crucial to remember that extending the deadline for your business return does not also extend the date for your tax payments. If you owe money on your taxes, you must pay it right away. By paying now, you can avoid late costs and anticipate a possible refund when your return is eventually finished.
Work with a Tax Professional to Reduce Taxes for Your LLC
Utilize the remaining time before your LLC’s 2023 tax deadline to complete your taxes correctly. To optimize your savings and ensure that your returns are completed completely and on time, contact Your Part Time Accountant small business tax experts.
This page shouldn’t be taken as legal, business, or tax advice. It should only be used for informational purposes. Regarding any issues mentioned in this essay, each person should get legal, business, or tax advice.