Filing Tax Returns for New Business

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New Business Tax ReturnsIf 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.

Business FilingIf 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.

Tax PenaltiesThe 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.

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