Extension for LLC: Everything You Need to Know
If you need an extension for LLC with regard to paying your business tax return, you must fill out Form 7004. 3 min read updated on January 01, 2024
If you need an extension for LLC with regard to paying your business tax return, you must fill out Form 7004. This form requests an extension for partnerships as well as LLCs that are filing as partnerships, S corporations, or C corporations.
The extension must be filed by the date the business tax return is due. Approval is automatic, so you don't have to wait to find out if you were approved or not. Although it extends the amount of time for filing, it does not mean you can wait to pay your taxes. Any taxes due must be paid by the tax return's due date, which means you need to estimate the amount you think will be due.
You should make note of these important due dates so you don't risk being late. Partnerships and multiple-member LLCs must now file their returns on the 15th day of the third month following the end of the company's fiscal year. However, this is always going to be March 15, because fiscal years must end on December 31.
Since dates change each year, keep in mind that the due date may fall on a weekend or holiday. In that case, the next business day would be the due date.
Extensions expire six months after the original due date. Therefore, all LLCs and partnerships must file on or before September 15.
How to Fill Out Form 7004
The form itself is simple and short. First, you need to fill out your business name and tax ID number, which is usually the Employer ID number, or EIN. You can file online or by mailing a paper copy to the IRS. Your estimated tax can be paid with a credit or debit card. Remember that extensions to file do not give you an extension of the time to pay.
The next steps are as follows:
- If this is a short tax year, you must indicate it and check a box to show the IRS the reason for having a short year.
- Estimate your total tax due and fill it in.
- If there have been any payments or credits already applied to your account, put it down and subtract it from the estimated total tax.
- Fill in the balance due, and pay by debit or credit card.
The location where you will mail a paper copy will be shown on the IRS website. It depends on the form you are filing and your business' location. However, the IRS suggests that you take advantage of their e-file system. You can also use tax preparation software to file an extension, or ask your tax preparer.
What About Personal Taxes?
If your LLC only has one member, you don't need a form filled out for both personal and business extensions of time to file taxes, because you and your business are considered the same. To file an extension for your personal taxes, Form 4868 is used. Anyone who needs a personal tax extension must use this form, but it also includes Schedule C income for a sole proprietorship.
While most businesses will need to use their Federal Tax ID number, which is also called an Employer Identification Number or EIN to file their tax extension form 7004, it's different for a single-member LLC. If you are using Form 4868, even if you have an EIN for your business, you need to use your own Social Security Number.
You still need to pay any taxes that are due, because filing an extension does not give you an extension of the time to pay. Failure to pay on time will subject you to penalties and fees. This means you must estimate the amount due. The person who keeps your financial records should be able to determine this by multiplying your taxable income by your current tax rate. Remember that any estimated payments you made throughout the year should be subtracted. It's better to over-estimate this amount than to under-estimate.
Official approval by the IRS for personal extensions may take a few days, so it's all right if the tax deadline passes before you hear from them. During this time, if you spot any errors, you can fix them. For a business extension, the IRS will usually contact you within 24 hours to inform you of the status. In both cases, if the tax return extension request was submitted before midnight on the due date, it will be considered on time.
If you need more information or help with an extension for LLC, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.