When are Quarterly Taxes Due in Chicago?
The responsibility to pay quarterly taxes is timely and exact, leaving no room for confusion about when payments are properly due3 min read
The responsibility to pay quarterly taxes is timely and exact, leaving no room for confusion about when payments are properly due. Business owners in Chicago need to understand exactly when they are legally obligated to pay business taxes. This article explains the details of quarterly taxes due in the city of Chicago.
Not understanding when quarterly taxes are due could result in significant financial repercussions, including fines and penalties. Quarterly taxes are enforced by the IRS and enforced by the state of Illinois, so it is important to make a business’s payments on time and in the required format. Knowing when quarterly taxes are due, as well as which taxes are applicable, can help businesses in Chicago ensure that they remain in good compliance with local regulations.
Which Taxes Are Due Quarterly in Chicago?
Quarterly taxes are applicable to federal and state income taxes, as well as self-employment taxes. Businesses in Chicago must pay the same taxes whether their business is S-Corp, C Corp, a sole proprietorship, a partnership, or any other legal entity.
Those who own a business in Chicago are responsible for filing the appropriate taxes with each fiscal quarter. The following taxes are due quarterly in Chicago:
1. Federal and State Income Tax
Businesses in Chicago must pay federal and state income taxes on a quarterly basis. Federal taxes are based on the business’s gross income, minus depreciation and any other deductions the company qualifies for. State taxes are also based on gross income, but the taxes owed to each state vary. It is important to review the rules and regulations applicable to businesses, as well as the necessary documentation that must be provided to the IRS.
2. Self-Employment Tax
Self-employment taxes, or SE taxes, are applicable to businesses in Chicago that are either limited liability corporations (LLCs) or sole proprietorships. These taxes must be paid quarterly, and are based on the business’s net income. It is important to understand exactly how much should be paid in SE taxes each quarter and to the relevant authorities.
When Are Quarterly Taxes Due in Chicago?
Quarterly taxes in Chicago are due on the last day of the fiscal quarter, or March 31, June 30, September 30, and December 31. Business owners must submit the applicable forms and taxes to the IRS within the specified timeframes. The penalties for late filing and payment can be severe, so business owners should make sure to file taxes on time.
Businesses filing taxes in Chicago must also create and file a balance sheet with their tax return. The balance sheet must outline the business’s total assets, liabilities, and net equity. The balance sheet should also include a P&L statement, or income statement, to report the business’s total net income.
The Advantages of Working with Experienced Business Lawyers in Chicago
Businesses in Chicago dealing with quarterly taxes need experienced legal advisors who can help them understand their legal requirements and the best strategies for their unique financial situation. It is a good idea to work with local lawyers who understand the local regulations and can provide companies with the most comprehensive legal advice.
UpCounsel is a valuable resource for businesses in Chicago looking for experienced and reliable lawyers to help them navigate their legal requirements. UpCounsel’s highly rated legal network provides businesses with access to experienced legal professionals, offering legal advice and representation for a variety of business needs. With UpCounsel, businesses can also access streamlined payment processes and cost-effective prices.
Finding the right lawyer in Chicago to handle the company’s legal requirements should not be a stressful or time-consuming task. With UpCounsel, business owners can quickly find a lawyer who is perfectly suited to handle the company’s legal needs.
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