When are Small Business Taxes Due? Key Deadlines & FAQs
April 22, 2024
Are you a small business owner wondering about the tax deadlines for the year? Feeling a bit overwhelmed? Don't worry; you're not alone.
Whether you're operating as a sole proprietor, partnership, S corporation, or traditional corporation, you need to know when your taxes are due. Staying in the loop helps you to stay compliant and avoid penalties.
Here, you’ll learn what you need to know about the deadlines for filing taxes as a small business owner.
Filing Taxes for Your Small Business
Taxes might not be the most exciting topic, but they're an essential part of running a small business. No matter what type of entity you’re in charge of, you have tax obligations that need to be met each year.
Let’s see a quick breakdown for sole proprietors, partnerships, S-corps, and corporations.
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When Sole Proprietor Business Taxes are Due
As a sole proprietor, your business income is typically reported on your personal tax return. For the tax year 2024, the deadline for filing your taxes is April 15th[1].
Keep in mind that this date may vary if April 15th falls on a weekend or holiday.
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When Partnership Business Taxes Are Due
Partnerships also have a tax deadline of April 15th for filing their tax returns in 2024. Additionally, partnerships must provide each partner with a Schedule K-1. The Schedule K-1 outlines each share of the partnership's income, deductions, and credits.
When is S Corporation Business Tax Due
S corporations, which pass corporate income through to their shareholders, have a tax deadline of March 15th. All shareholders will also need to receive Schedule K-1 forms for tax reporting purposes.
When Corporate Business Tax is Due
Traditional corporations, or C-corporations, must file their tax returns, using Form 1120, by April 15th. This applies to corporations that operate on a calendar year basis.
Is There A Small Business Quarterly Tax Deadline?
In addition to annual income tax filings, many small businesses are required to pay quarterly estimated taxes.
- First Quarter (January 1 - March 31) – Due April 15th
- Second Quarter (April 1 - May 31) – Due June 15th
- Third Quarter (June 1 - August 31) – Due September 15th
- Fourth Quarter (September 1 - December 31) – Due January 15th of the following year
Learn more about estimated taxes, including calculations, on the IRS official website[2].
When Are Employment Taxes Due?
If you have employees, it's important to be aware of the deadlines for employment taxes.
These taxes include:
- Federal income tax withholding
- Social Security and Medicare taxes (FICA)
- Federal Unemployment Tax (FUTA)
Understanding your specific payroll schedule is essential. You need to meet the deadlines for employment taxes and remain compliant with IRS regulations. By staying organized and diligent in your tax preparations, you can ensure smooth payroll operations. This helps you avoid potential issues with tax authorities.
The deadlines for employment taxes vary depending on your payroll schedule. Here are some of the most common scenarios.
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Bi-Weekly Payroll Taxes
For businesses that pay their employees bi-weekly (every two weeks), the deadlines for employment taxes typically fall shortly after each pay period. This means you'll need to ensure that federal income tax withholding, FICA, and FUTA taxes are calculated and deposited according to the IRS guidelines for each pay period.
Monthly Salary Payroll Taxes
If your business operates on a monthly salary payroll, where employees are paid once a month, the deadlines for employment taxes are usually monthly as well. This means you'll need to calculate and remit federal income tax withholding, FICA, and FUTA taxes to the IRS on a monthly basis.
Weekly Payroll Tax
For businesses with a weekly payroll schedule, where employees are paid every week, the deadlines for employment taxes are more frequent. You'll need to calculate and submit federal income tax withholding, FICA, and FUTA taxes to the IRS every week, ensuring compliance with tax regulations and avoiding penalties.
Frequently Asked Questions
How long can a small business go without paying taxes?
Small businesses must pay their taxes according to the deadlines set by the IRS. Failure to pay taxes on time can result in penalties and interest charges. Staying compliant with tax obligations is essential to avoid any legal issues.
How often do small businesses have to file taxes?
Small businesses typically file taxes annually. However, some businesses may be required to make quarterly estimated tax payments throughout the year.
What is the tax start date for a business?
The tax start date for a business depends on its formation and the tax year it chooses. Most businesses operate on a calendar year basis and begin their tax obligations from the start of the year.
Can business taxes be filed late?
While it's possible to file for an extension, filing taxes late can result in penalties and interest charges. It's best to file taxes on time or request an extension if needed.
Do I have to pay taxes if my business doesn't make money?
Even if your business doesn't make a profit, you may still be required to pay certain taxes, such as self-employment tax or state business taxes. It's essential to consult with a tax professional to understand your specific obligations.
Make Use of Business Resources From Centier Bank
In conclusion, understanding the tax deadlines for your small business is crucial for staying compliant with the IRS. By knowing when your taxes are due and planning ahead, you can avoid penalties and ensure smooth operations for your business.
We're here to assist small businesses at every stage of the entrepreneurial journey. We can help you launch, operate, and grow your company.
Check out Centier Bank's small business resources today.
For educational purposes only – not intended as tax advice. Always consult your tax preparer to discuss your specific situation.
Sources:
[2] https://www.irs.gov/newsroom/basics-of-estimated-taxes-for-individuals
