LLC Filing Date: Everything You Need to Know
The LLC filing date is different from other business structures and you should pay your business taxes on time every year to avoid fines and penalties.4 min read
2. Filing Deadlines for Each Business Entities
3. Forms Used by Sole Proprietors
How Tax Return Due Dates are Determined Each Year
When the tax date happens on a weekend or a holiday, the due date will be moved to the next following business day. So, if tax day is on a Sunday, you will not have to file until the following Monday. Tax day is always on April 15th of every year. In the year 2018, the due dates for all tax returns, both personal and business, is on a Sunday. The next Monday is a holiday, so you do not have to file until Tuesday April 17th.
Filing Deadlines for Each Business Entities
The IRS requires that all businesses pay taxes by the filing deadline. LLCs do not have a separate filing deadline, unlike other business entities. The filing deadline will depend on the type of business you choose with regard to taxes.
- Corporations: If you treat your LLC like a corporation for the sake of taxation, you will need to file IRS Form 1120 by the due date annually. The due date will be the 15th day of the third month after the end of the tax year. You will need to choose to use a fiscal or calendar tax year when filing your business’ tax return for the first time. The calendar year requires that you report all of the income and expenses from January 1st to December 31st. A fiscal year is any 12-month range that ends on any other date than December 31st. So, if your LLC forms in July and you choose a calendar year for tax purposes, you can do a short-year tax return from July to December and then file by March of the following year. After that, your taxes will be due in March for coverage for the prior calendar year.
- Partnerships: An LLC that abides by partnership rules for taxation has to conform the tax year and the accounting period that all majority owner LLC members use. If the majority does not have accounting periods that are identical, the LLC has to use the time period that is used by the principal partners. A principal partner is a member in the LLC that has over 5-percent interest in the capital or profits of the LLC. If both of these rules are not applicable, LLCs have to use an accounting period that causes the least amount of deferral of cash to all members. The LLC has to file IRS Form 1065 by the 15th day of the fourth month after the end of the tax year. As an example, if one rule has the LLC use a tax year of July 1 through June 31, you need to file and pay taxes by October 15th of each year.
- Disregarded Entity: The business entity is disregarded for taxation purposes if you are the sole member of the LLC. Disregarding the LLC means that you have to include all the income and the expenses on your personal income tax return. That simply means you will file your business taxes when you file your personal taxes, which is April 15th every year.
- Changing the Tax Year: you can opt to change the tax year for your LLC that is treated like a partnership or a corporation for taxation purposes by applying using Form 1128. Individual tax payers may not make this request.
Forms Used by Sole Proprietors
Sole proprietors will report all business income on their personal income tax returns, IRS Form 1040. Typically, you will need to file a Schedule C with your 1040 each year to report your income and deductions from your business. Sole proprietors also have to file the Schedule SE with the 1040. There could be additional forms and schedules you need to prepare, which will depend on the nature of your business.
- Due Date: Most all sole proprietors will follow a calendar year for tax payment purposes. The filing date is April 15th every year, unless the date falls on a weekend or holiday.
- Filing Extension: You can request a six-month extension to file your taxes. You will need to file Form 4868 for an automatic extension. This needs to be completed by the original filing deadline. You will need to pay any taxes you estimate that will be due by the original deadline. If you don’t, there is a risk of paying interest and penalties. The return will be due by October 15th unless it is a weekend or holiday.
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