Tax Due Date?

Question: When does a corporation file taxes?

Answer: A corporation must file a tax return every year. Even if it does no business, it still should file a return, called a non-activity return.

The due dates for the returns a determined by how the entity wishes to be taxed.

If a Corporation elects to be taxed as an S Corporation, the tax return is due on April 15th in conjunction with your personal 1040 return, which of course is also due on April 15th.

If the corporation has elected to file as a C-Corporation for tax purposes the due date can be a little more difficult to determine; however, rule of them is the taxes are due 2 ½ months from the closing of the financial records. Financial records are kept either on a Calendar or Fiscal year. Records kept on a Calendar year will close its records on December 31st and tax returns would be due by March 15th. If records are kept on a Fiscal year the directors can decide in what month to open the books and which month to close the book, then taxes would be due 2 ½ months after the closing of the books, for example purposes, let’s say we open the fiscal records on April 1st; we would close the books on March 31st, and the tax return would then be due on June 15th.

Question: What if my business entity is an LLC then when would my taxes be due?

Answer: The LLC will also file a tax return each year. Even if no business has been conducted a non-activity return should be filed.

The LLC is now being referred to as the “check the box” entity, since it can elect to be taxed a number of different ways.

By default the IRS views the LLC as a partnership or if the LLC elects to be taxed as an S Corporation. The tax return would be due on April 15th in conjunction with the partners’ personal 1040 return, also due on April 15th.

If the LLC elects to be taxed as a C-Corporation for tax purposes, then the above C Corporation explanation would apply.

Both the Corporation and LLC can elect to be disregarded, which means that neither would file any tax return and all information would be filed directly on an individual’s 1040 tax return, with the due date of April 15th.

Just like individuals, both the Corporation and LLC may file extensions with the Internal Revenue Service, which would of course change the due date.