When Are Taxes Due for an LLC? (All You Need To Know)

Atty. Danya Shakfeh
Published by Atty. Danya Shakfeh | Author
Last updated: April 10, 2024
FACT CHECKED by Lou Viveros, Growth & Transition Advisor
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Tax payment is an essential aspect of running a company. You will be required to pay a fine if you fail to remit business taxes, 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 an attorney and business consultant for limited liability companies, I'll provide you with all the pertinent information regarding taxation due dates for LLCs.

The article is backed by comprehensive research into LLC taxation 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.
  • According to the IRS, over 23 million sole proprietorships, including single-member LLCs, filed their taxes using Form 1040 and Schedule C in the last fiscal year.
  • In navigating their finances, some of my clients encountered unexpected challenges due to retroactive tax changes in the state last year, creating a need for careful adjustment and planning.


What Are LLC Taxes Due Dates?

An accountant calculating taxes for an LLC

The due dates for LLC business taxes will largely depend on how the LLC chooses to be taxed. An LLC can be taxed as a sole proprietorship, partnership, or corporation, so there are different LLC tax forms.

Unless you are a single-member LLC treated as a sole proprietorship by the IRS, you must 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.

It is also essential to note the annual changes in tax payable and due dates in your state.

Last year, several states implemented retroactive tax adjustments effective from January to July 2023. According to the Tax Foundation, several more tax modifications were recently adopted in January 2024, affecting over 30 states [1].

Because of the many tax filing options available to LLCs, seeking professional advice from a trusted accountant in your state is essential.

1. Tax Deadlines For Sole Proprietorship

LLCs taxed as sole proprietorships need to file Form 1040; the deadline to file taxes is April 15 [2]. 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. According to the IRS, this applies to the majority of single-member LLCs, aligning with the fact that over 23 million sole proprietorships filed their taxes in this manner for the fiscal year.

The LLC 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 partnership's personal income tax return, 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 their personal income tax return.

Remember 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

Close up image of documents about llc tax due date

Corporations' filing deadlines differ from those applied to other types of business entities.

If your business structure is taxed as a corporation instead of an LLC or sole proprietorship, there are differences in how you file your taxes.

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 they opted for.

If your LLC files taxes on a fiscal year basis, you should file a corporate tax return by the 15th day of the fourth month following the close of your corporation's tax year.

Remember that S corporations can't opt for a fiscal year and must follow calendar year tax filing deadlines.

"If your LLC timely filed Form 2553 for the fiscal year, the IRS classifies it as an S corporation, allowing business profits or losses to be reported on the personal tax returns of the shareholders as a pass-through entity."

- Delina Yasmeh, J.D./Tax LL.M, Distinguished Expert in Mergers & Acquisitions

LLCs and Estimating Tax Payments for Small Businesses

For all small business owners and self-employed entrepreneurs, it's crucial to understand how to make tax payments.

A small business owner with an LLC must 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.

Small business owners are obligated to make quarterly LLC tax payments every three months, starting in January.

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.

Related Articles:

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 must also pay the tax.

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.

References:

  1. https://taxfoundation.org/research/all/state/2024-state-tax-changes/
  2. https://www.irs.gov/faqs/small-business-self-employed-other-business/starting-or-ending-a-business/starting-or-ending-a-business-3

About The Author

Author
Atty. Danya Shakfeh, with over ten years of experience as a corporate attorney, leads Motiva Law, offering strategic legal advice to entrepreneurs. She is skilled at transforming complex legal concepts into clear strategies, allowing clients to pursue their goals. A "Rising Star" by Super Lawyers and an alumna of Northwestern University Pritzker School of Law, Danya is distinguished in business law.
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Growth & Transition Advisor
LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
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