With the 2024 business tax deadline approaching fast, businesses registered as an S Corporation, Partnership, or LLC taxed as such need to file their tax returns by this Friday, Mar. 15. To avoid harsh penalties, make sure to submit your documents on time or explore the option of an extension to ensure compliance.
To begin with, business tax filing deadlines are not limited to just one. Unlike individuals, businesses face unique deadlines and requirements when it comes to taxes. Find your dedicated PriorTax Tax Professional to walk you through to file your 2024 business tax from start to finish.
Being a business owner necessitates understanding tax filing deadlines to prevent incurring penalties and fees. Managing taxes can pose challenges for businesses, particularly those navigating the process for the first time.
It’s essential to note that 2024 business tax filing deadlines vary depending on your business type. Unlike individual tax requirements, businesses are subject to distinct deadlines and obligations. Below, we have outlined the key dates you need to know for your specific business type. Familiarize yourself with each deadline provided and ensure you add all pertinent business tax filing dates to your schedule.
Business Tax Filing Deadlines You Need For?
Mark Your Calendar: Essential Tax Filing Deadlines for S Corporations, Partnerships, and LLCs Taxed as Partnerships in the Upcoming Season. Be sure to submit your tax returns by Mar. 15, 2024, which is the initial deadline for partnerships, LLCs categorized as partnerships, and S corporations.
The deadlines for filing taxes are influenced by your business structure, and how your business is taxed may also differ.
Partnerships
Collaborative ventures offer a straightforward framework where multiple individuals jointly own a business. Each party shares equal financial, legal, and managerial duties in a general partnership.
Looking at it from a tax standpoint, a partnership operates as a pass-through entity, whereby the company does not bear the burden of federal income tax. Instead, the partners must disclose their earnings, deductions, and credits on their personal tax filings utilizing Schedule K-1 (Form 1065).
A partnership should consider the implications of self-employment taxes and estimated quarterly taxes. It is advisable to consult with a tax professional to gain insights into individual tax circumstances.
S Corporations
Within the realm of corporate entities, S corporations are a prevalent structure, standing alongside C corporations. Often embraced by small businesses and family-owned enterprises, S corporations must adhere to certain criteria to attain this designation. Notably, S corporations have a shareholder limit of 100 individuals.
Employing pass-through taxation, S corporations also report their income, deductions, and credits on their shareholders’ personal tax filings, preventing double taxation at the corporate level.
When it comes to tax obligations, S corporations have a defined process. Utilizing Form 1120-S, these corporations submit their yearly tax return and distribute a Schedule K-1 to each shareholder, outlining their individual portion. Shareholders are viewed as self-employed in this scenario, bearing the duty of settling self-employment taxes for the income they derive from the S corporation.
LLC
In many cases, limited liability companies, commonly known as LLCs, embody elements of both partnerships and corporations. One key advantage of this business structure is its flexibility regarding taxation. Depending on the number and tax status of its owners, who are called members, an LLC has the option to elect to be taxed as a sole proprietorship, partnership, S corporation, or C corporation.
When an LLC consists of just a single member, it is classified as a single-member LLC and is subjected to taxation similarly to a sole proprietorship. Conversely, when an LLC has several members, it is classified as a multi-member LLC and is automatically taxed as a partnership.
In both sole proprietorships and partnerships, business income is treated as pass-through for tax purposes. This implies that the income is taxed on personal tax returns rather than on separate business tax returns, thereby preventing double taxation.
If a Limited Liability Company (LLC) wishes to change its tax classification to either an S corp or C corp, it can do so by submitting Form 2553 to the IRS. C corporation taxes are reported at the corporate level, while S corporation taxes flow through to the individual level. It’s important to note that state tax regulations differ across states; therefore, seeking advice from a tax professional is advisable to gain clarity on your personal tax circumstances.
Need More Time? File A Business Tax Extension
To obtain a tax extension for your business, you have the option to submit either Form 7004 or Form 4868, depending on the nature of your business. Entities like multi-member LLCs, partnerships, corporations, and S corporations typically opt for Form 7004.
Tax Form 7004 is due.
- Mar. 15, 2024: partnerships, S corporations, and LLCs taxed as a partnership or as an S corp;
- Apr. 15, 2024: C corporations and LLCs taxed as a C corp.
(Sole proprietors and single-member LLCs use Form 4868, along with individuals filing their tax returns. The deadline for filing Form 4868 is Apr. 15, 2024.)
With the tax extension, your new updated tax deadlines will be:
- Sept. 16, 2024: Partnership and S corp tax deadlines.
- Oct. 15, 2024: Individual, sole proprietorship, and C corp filing deadline
