When Are LLC Taxes Due?

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As you begin to prepare your personal tax returns for filing on April 18, it is also necessary to ensure that all necessary filings for your LLC will meet the deadlines the IRS has set throughout the year. The tax deadlines you must meet depend on how your LLC is taxed, as a corporation, partnership, or sole proprietorship. Regardless of your LLC’s tax status, the team at Evolution Tax and Legal is breaking down the deadlines you’ll need to meet, and how our business formation lawyers can help you do it.

Fiscal Year vs. Calendar Year

For an LLC that files either corporation or partnership tax returns, the business can choose to operate on either a fiscal year or a calendar year. If you have chosen to operate on a calendar year, the tax year will follow the same structure as personal income taxes, from January 1 to December 31. If you choose to operate on a fiscal year, your tax year can follow any 12 month structure, for example the year can be from September 1 to August 31 of the following year. The year on which the LLC operates can be changed over time, by filing an Application to Adopt, Retain or Change a Tax Year with the IRS.

Corporation Tax Dates

If your LLC operates as a corporation for tax purposes, there are different deadlines for tax filings, depending on the fiscal or calendar year the LLC operates under. If the LLC has opted to operate as a corporation with a calendar tax year, their taxes are due on April 15 of the following year, the same day as personal tax returns are due. If April 15 falls on a weekend or a holiday, as it does in 2022, the returns will be due on the following Monday, April 18 in 2022.

If your corporation operates on a fiscal calendar, your tax filings will be due on the 15th day of the fourth month following the end of your fiscal year. So, if your fiscal year ends on August 31, your tax returns for your LLC operating as a corporation are due on December 15 of the same year. If your LLC operates as an S corporation for tax purposes, you are required to use a calendar year for your tax purposes and taxes are due on March 15.

Along with money owed, corporations must file Form 1120 on the due date, which is the Corporate Income Tax Return form.

Partnership Tax Dates

If your LLC operates as a partnership for tax purposes, there are multiple ways to determine your filing deadline. The tax accounting calendar should be based on the largest majority of members in the partnership, and the calendar should follow the structure that causes the least income deferral to the members. As such, if the majority of members use a calendar year, the partnership should also use a calendar year to determine tax deadlines. For the calendar year, the partnership’s taxes will be due March 15 of the following year. If most members use the same fiscal year, the partnership should file based on that fiscal calendar, and the deadline will be on the 15th day of the fourth month following the end of the fiscal year.

If there is not a majority among members for which tax calendar is being followed, the LLC is required to use the same calendar as the principal members follow. A principal member is a member holding 5% or more stake in the company. If there is not a member who holds 5% or more stake in the company, the LLC is required to use the calendar year that causes the least amount of deferred income among members.

Along with money owed, partnerships must file Form 1065, the U.S. Return of Partnership Income, and each partner is required to report their own share of business profits and losses on their personal tax return which is due on April 18.

Sole Proprietorship Tax Dates

If you are the only owner of your LLC, the business is taxed as a disregarded entity, and therefore the business profits and losses are filed jointly with your personal tax return. This makes the process simpler than the others: you can file your personal tax return, Form 1040, as usual and report all income and expenses of the business along with your personal income. The deadline for this filing is April 18, 2022.

While you may be prepared to file your personal income tax return, when you begin juggling the various deadlines of an LLC, and determining calendar or fiscal year and what the LLC is operating as for tax purposes, it can become extremely complicated. The seasoned tax professionals at Evolution Tax and Legal will work with you to determine the best course of action for your LLC this tax season, and optimize savings while providing you with a stress-free tax season. Contact the team to learn more about filing your LLC taxes today.