If you’ve started a new business this year, you certainly had a lot on your plate. There’s one more thing to consider – your business tax return.
I spend a lot of time talking about business deductions and how to take them, but this is a more basic issue. Which tax return do you use and when is it due?
If you haven’t selected a business structure, you’ve got a Sole Proprietorship. That means you file Schedule C with your individual income tax return. It’s due 4/15, unless you get an extension of time to file to 10/15. If you have a single member LLC that has not elected how it wants to file, it will also be treated as a Sole Proprietorship.
If you have a multi-member LLC that hasn’t elected how to be taxed or a true partner that has filed with your state, you need to file Form 1065 for US partnerships. This return is due by 4/15, or you can get an extension to file until 9/15. Remember that the partnership return needs to be completed before the partners can submit their personal tax returns. That’s because the income or loss is reported on a K-1 for the owners and has to be included on their tax return.
If you have an S Corporation or an LLC that has elected S Corporation status, you need to file a Form 1120-S. This return is due by 3/15, or it can be extended until 9/15. Just like the partnership return, the S Corporation return needs to be finished before you can file your personal return.
If you form a C Corporation, it will be due 2 ½ months after the year-end. It can be extended for another 6 months. The C Corporation is not a flow through entity. It will pay tax itself based on the income showing on its tax return. So, an owner of a C Corporation doesn’t need to wait for the corporate return to be finished before he or she can file.
The penalties are huge if you are late with your partnership or S Corporation filing. Make sure you know the dates and file on time. If we can help, give us a call at 888-592-4769.