For individuals in the US, the infamous tax filing deadline has always been April 15, but a lot of people don't know that the business tax deadline for certain kinds of businesses is not the same. The IRS requires partnerships, multi-member Limited Liability Companies and S-corporations to file their taxes one month earlier on March 15.
There are many different types of business entities that both individuals and groups of people can legally form in order to make conducting business more efficient in all kinds of ways. Let's look at the ones that share the March 15 tax filing deadline.
A business that is owned by two or more people who are equally responsible for the business in the eyes of the law is called a partnership. This means that the members of a partnership share the responsibility if the business has losses, just as they share profits. It also means that if the business needs a new piece of equipment, for example, the partners share the cost of purchasing it.
What's fundamentally different about a limited liability company is that it protects its owners from being personally responsible for the things mentioned above. So if the LLC goes into debt, the assets of individual owners won't be at risk of being required to pay for that debt. They're also equally responsible for knowing when that March 15 tax deadline is.
Similarly, the profits of an LLC can be passed directly to the individual owners without being subject to corporate tax, which makes them known as pass-through entities. This means that owners only pay tax once on those profits when they receive them as personal income.
Like an LLC, S-corps are pass-through entities, so when that S-corp tax deadline for 2023 comes, the owners won't have to pay corporate taxes. But apart from that, they are similar to other corporations in that they must have a certain organizational structure and follow certain internal practices. They have to have a board of directors, for example, and they're required to hold meetings for shareholders.
If you are a new owner of any one of these busines types, you're probably wondering "When are corporate taxes due in 2023?" For business organized as partnerships, multi-member LLCs or S-corporations, the filing deadline is March 15. The owner of a single-member LLC does not need to file a separate tax return for their business. They can simply add the information about their business to Schedule C on their personal tax return.
The filing date can be different if your business follows a separate fiscal year, which you may be the case if you choose different start and end dates for your tax year to make accounting easier. In that case, you'll need to file taxes within three months after the end of your company's fiscal year, on the fifteenth day of that month.
It can be stressful when the tax deadline is looming, but don't be hasty. It's too easy to make mistakes and miss opportunities to save on your taxes when you're in a rush. And it's easy to ask the IRS for a later business tax extension deadline in 2023.
Just fill out Form 4868 and send it to the IRS, along with the taxes you owe. That last part is crucial. A lot of people make the mistake of thinking a tax extension means you don't have to pay taxes until that later filing deadline. But the new deadline only applies to filing your tax forms. If you have an S-corp, and you apply for a later S-corp tax deadline in 2023, the tax you owe is still due by the original deadline, and you'll need to estimate what you owe.
As with so many things in life these days, filing taxes is much easier done digitally. When you e-file your company's tax returns, they get transmitted electronically to the IRS instantaneously. You don't need to worry about them being lost in the mail or arriving later than you expected.
One of the most impactful benefits of e-filing is the confirmation you receive that the IRS has received your tax returns, and your filing has been successful.
Digital apps like FlyFin are also much faster and easier – and more affordable – than traditional CPA services or trying to fill out the forms on your own. FlyFin is set up for small businesses to find every possible deduction and provide tax filing with a team of CPAs who specialize in taxes for partnerships, LLCs and S-corps.
FlyFin CPA Team
With a combined 150 years of experience, FlyFin's CPA tax team includes tax CPAs, IRS Enrolled Agents and other tax professionals, offering users the most comprehensive tax advice and preparation.