When Are Taxes Due for an LLC? (All You Need To Know)
Tax payment is an essential aspect of running a company. If you fail to pay business taxes, you will be fined and the LLC may be administratively dissolved.
The due date for filing LLC taxes depends on the date of formation and the type of taxation election you made when you formed your company.
With over a decade of practice as a business consultant for limited liability companies, I'll provide you with all the pertinent information you need regarding taxation due dates for LLCs.
The article is backed by comprehensive research and collaboration with our panel of tax experts.
Quick Summary
- Taxes are due on April 15th for sole proprietorships and corporations, while partnerships and S-corporations are due on March 15th.
- The specific classification of an LLC determines the due dates and corresponding tax forms that need to be filed.
- Aside from income tax, some states levy federal, state, and local taxes on some LLCs.
LLC Taxes Due Dates
The deadlines for LLC business taxes will largely depend on how the LLC chooses to be taxed. An LLC can choose to be taxed as either a sole proprietorship, partnership, or corporation, which is why there are different LLC tax forms.
Unless you are a single-member LLC treated as a sole proprietorship by the IRS, you will have to choose your tax year accounting method: a fiscal year or a calendar year.
A fiscal year is 12 consecutive months (e.g. July of this year to June the following year), while a calendar year is from January to December.
Both methods can be complicated if you fail to plan. For instance, an LLC with a fiscal year may make estimated quarterly tax payments based on its taxable income for the previous quarter.
Because of the many tax filing options available to LLCs, it is important to seek professional advice from a trusted accountant.
1. Tax Deadlines for Sole Proprietorship
LLCs taxed as sole proprietorships need to file Form 1040, the deadline to file taxes is April 15 [1]. Form 1040 should be filed with Schedule C, and it serves to pay federal income tax that covers all income, losses, and annual expenses of a single-member LLC.
The LLC itself doesn't file any LLC business tax because it is not a separate legal entity.
2. Tax Deadlines for LLC Partnerships
Unlike sole proprietors, partnerships pay taxes on a partnership tax return. LLCs with two or more owners are viewed as partnerships for tax purposes.
The federal government requires partnerships to file an annual income tax return and pay tax by the 15th day of the third month after each fiscal year ends (March 15).
Partnerships that fail to make quarterly estimated tax payments will be subject to penalties on amounts owed.
Business income is reported on the personal income tax return for partnerships, also known as Form 1065. Each member must be handed a Schedule K-1 to report their share of the business's income or loss on his/her personal income tax return.
Keep in mind that if you opted for the fiscal year to determine your tax due date, the tax filing deadline is the 15th day of the fourth month after that fiscal year (March 30).
The best way to ensure you meet all tax deadlines is by using accounting software or SMB bookkeeping service and keeping track of your income, expenses, and taxes due daily.
3. Tax Deadlines for LLC Corporations
If your business structure is taxed as a corporation instead of an LLC or sole proprietorship, there are some differences in what you need from those entities outlined above.
For example, corporations have their filing deadlines apart from those applied to other types of business entities.
Corporations file taxes depending on the tax filing deadlines they previously chose for their tax year - calendar year or fiscal year.
April 15 is the date by which all corporations must file their personal income tax returns if it's the calendar year that they opted for.
If your LLC is required to file taxes on a fiscal year basis, you need to file a corporate tax return by the 15th day of the fourth month following the close of your corporation's tax year.
Keep in mind that S corporations can't opt for a fiscal year and must follow calendar year tax filing deadlines.
LLCs and Estimating Tax Payments
A small business owner who has an LLC is required to pay estimated taxes throughout the year. If you are self-employed, as most small business owners are, you need to take care of self-employment taxes.
A small business owner is obligated to make quarterly LLC tax payments every three months, starting in January.
For all small business owners and self-employed entrepreneurs, it's crucial to understand how to make tax payments.
It can get confusing if you don't know what to do when your LLC has to pay estimated quarterly taxes, so it's best to look into it or seek business tax advice from a professional.
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FAQs
Do LLCs Pay the Excise Tax, and When?
LLCs pay the excise tax if the nature of the business involves the manufacture of some taxable items like tobacco, alcohol, fuel, and firearms to name a few. LLCs that engage in travel, gambling, telecommunications, and trucking are also required to pay.
Excise tax returns are due by April 30, July 31, October 31, and January 31.
How Often Do LLCs Pay Payroll Taxes?
LLCs may pay payroll taxes bimonthly, monthly, or quarterly by withholding a percentage of the income of employees or independent contractors.
Do I Need to File a Tax Extension for LLC?
You need to file an extension for an LLC if you won't be able to pay taxes on due dates. Since an LLC features pass-through taxation, you'll need to file a personal tax return extension.
Does an LLC File Corporate Tax Returns?
An LLC files corporate tax returns if the business owners opt to be taxed as a corporation. LLC taxed as a corporation pays business income taxes through Form 1120.
How Do I File Business Taxes for an LLC with No Activity?
You file business taxes for an LLC with no activity by filing a corporate tax return, which only applies to business entities taxed as a corporation. An LLC with no activity is still obligated to file taxes unless it chooses to dissolve its company entirely.
What Happens if LLC Does Not File Taxes?
If an LLC does not file taxes, the state may revoke your LLC's business registration certificate.
File Your Returns Properly and on Time
The specific type of LLC determines when taxes are due, sole proprietorships and corporations must file returns before April 15th while partnerships and S-corporations are due on March 15.
The appropriate forms must be filed according to the structure of the limited liability company.
It is advisable to employ a tax professional or use top LLC QuickBooks to organize your company's finances and accounting.
References:
- https://www.irs.gov/faqs/small-business-self-employed-other-business/starting-or-ending-a-business/starting-or-ending-a-business-3
