When Are LLC Taxes Due 2024: Essential Dates & Filing Tips for Business Owners

As a business owner, doing your business taxes can be one of the most difficult and stressful aspects of your job. Questions like when are LLC taxes due, what must you do to prepare for tax deadlines, whether and how much you owe in quarterly tax payments and how to file a tax extension are just some of the questions that likely on your mind.

The fact of the matter is that understanding your business taxes and determining your LLC’s tax filing deadline is crucial to avoid penalties and stay compliant. If your LLC is classified as a corporation for federal income tax purposes, your tax return is due on the 15th day of the fourth month following the end of your fiscal year, which for most businesses is April 15th. However, if the 15th falls on a weekend or a holiday, the deadline for your business taxes moves to the next business day.

If your LLC is registered as a partnership or considered a disregarded entity, the due date for your business tax is the 15th day of the third month, following the end of your fiscal year. For most entities, this is March 15th, unless of course it falls on a holiday or a weekend. In that case, you have until the next business day to file your business taxes.

One key fact to remember is that these are the tax deadlines for filing your business tax return. If you owe the IRS any amount in income tax, you must make your tax payment by this deadline to avoid any interest or penalities.

What if you are unable to meet the federal income tax deadlines? In that situation, you can file for an income tax extension, which gives you an additional six months to submit your return. Again, please note that an extension to file does not extend the time to pay the amount of income tax you owe. This is why it’s important to pay quarterly estimated taxes in four equal installments to avoid any penalities and interest charges.

Understanding LLC Tax Classifications

When operating a limited liability company (LLC), it’s essential to understand how the IRS classifies your business for taxation purposes, as this will determine your business tax payment and deadlines.

Differences in Taxation for Single-Member LLCs vs Multi-Member LLCs

A Single-Member LLC is taxed as a sole proprietorship by default. This means the LLC’s income is reported on your personal tax return using Schedule C, and you’re responsible for the full range of self-employment taxes. In contrast, a Multi-Member LLC is classified as a partnership unless it elects otherwise. The profits and losses are passed through to members and reported on each member’s individual tax return.

Tax Responsibilities for LLCs as Pass-Through Entities

LLCs are considered pass-through entities, which means the LLC itself does not pay income taxes. Instead, the income “passes through” to your personal tax return. As an LLC member, you’ll pay taxes on your share of the LLC’s income, regardless of whether you actually received the funds. Additionally, you may need to make estimated quarterly tax payments if you expect to owe tax of $1,000 or more when your return is filed.

How the Choice of Taxation as Corporation Affects LLCs

An LLC has the option to be taxed as an S corporation (S Corp) or C corporation (C Corp). If you elect S Corp status, you can receive both salary and dividend payments from your LLC, potentially reducing self-employment taxes. However, S Corps must adhere to strict requirements and guidelines. On the other hand, choosing C Corp status means the company itself pays corporate taxes separate from your individual taxes. This is beneficial if you plan to reinvest profits back into the business rather than distribute them.

Remember, the choice you make will not only impact taxation but also the complexity of your filing requirements. Always consult with a tax professional to understand the full scope of your tax obligations and opportunities.

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Key IRS Tax Forms and Deadlines for LLCs

It’s critical to be aware of the specific IRS tax forms and deadlines for your LLC, as these will greatly affect your tax filing obligations. The forms you’ll use and the due dates for submission depend on how your LLC is structured for tax purposes.

Form 1065 for Partnerships

If your LLC is classified as a partnership, you must file Form 1065 by March 15, 2024. This form is an informational return that reports the income, gains, losses, deductions, and credits of the business. Additionally, remember that each partner should receive a Schedule K-1, detailing their share of the partnership’s income and losses, which must be reported on their personal tax returns.

Form 1120S for S Corporations

LLCs that have elected to be taxed as an S Corporation must file Form 1120S. The deadline is also March 15, 2024. Similar to partnerships, S Corporations complete Schedule K-1 forms for each shareholder, indicating the income passed through to them.

Form 1120 for C Corporations

For LLCs that elect to be treated as C Corporations, the relevant tax form is Form 1120, which must be submitted by April 15, 2024. Should you need more time to prepare your corporate tax return, you can file for an extension using Form 7004, which grants you until October 15, 2024.

Schedule K-1 for Individual Members

Each member of an LLC taxed as a partnership or an S Corporation will need to file a Schedule K-1 form, which documents their portion of the business’s income or loss. This form should be integrated with the individual’s personal tax return and is essential for reporting your taxes accurately.

Form 1040 for Single-Member LLCs

Single-Member LLCs are considered ‘disregarded entities’ for tax purposes and should report income using Form 1040. This form must be filed by April 15, 2024. Income from the LLC is combined with the owner’s other sources of income and processed as personal income.

Extension Options and Procedures

When managing your LLC’s taxes, understanding how to navigate extension procedures is crucial to avoid penalties. Below are specific steps you need to follow to file an extension and what to expect regarding deadlines and potential consequences if these deadlines are missed.

How to File for an Automatic Extension with Form 7004

To secure an automatic extension for your LLC’s tax return, you’ll need to submit IRS Form 7004. It’s important to do this by the original tax deadline, which is typically April 15. This form is straightforward: simply identify your LLC and provide the tax form number you would file without an extension.

Understanding the Extension Deadlines Specific to LLCs

The automatic extension provided by Form 7004 affords your LLC additional time until October 15 to file the required tax documents. Be aware that this extra time applies to filing your return, not to paying any taxes owed. To avoid interest and penalties, estimate and pay any owed taxes by the original due date.

Consequences of Missing the Deadline for Tax Extension

If you miss the extended deadline after filing Form 7004, your LLC may face late filing penalties. The penalty is often a percentage of the tax due, and interest accrues on both the unpaid taxes and penalties. It is crucial to file and pay by the extension deadline to prevent these additional charges.

Estimated Tax Payments for LLCs

As an LLC owner, you’re responsible for paying taxes on the income your business earns. One approach to fulfilling your business tax obligations is through paying quarterly taxes, ensuring you meet the IRS requirements and avoid potential penalties.

Calculating Your Quarterly Estimated Taxes

To calculate your quarterly estimated tax payments, you’ll first need an estimate of your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year. Use Form 1040-ES, which includes a worksheet to help you estimate your taxes for the current year. Divide the estimated sum by four to get your quarterly taxes.

Important Due Dates for Estimated Tax Payment

Remember these key dates for your LLC’s estimated tax payments to the IRS:

  • First Quarter: Payment due April 15, 2024
  • Second Quarter: Payment due June 17, 2024
  • Third Quarter: Payment due September 16, 2024
  • Fourth Quarter: Payment due January 15, 2025

Always remember to mark these dates on your calendar to ensure that you pay your quarterly taxes on time and don’t miss one of these tax deadlines

Forms and Process for Submitting Estimated Tax Payment

To submit your estimated tax payments, fill out Form 1040-ES. You have the option to pay:

  • Online using the IRS payment portal
  • By phone via the Electronic Federal Tax Payment System (EFTPS)
  • Through mail by sending a check or money order with the payment voucher from Form 1040-ES

Consistent payment of quarterly taxes helps you manage your tax burden effectively throughout the year.

Need professional assistance with your personal taxes?

Our team of experienced CPAs is here to help! Request a quote today and let us handle your tax needs with expertise and personalized solutions.

Business Deductions and Credits for LLCs

In managing your LLC’s financial responsibilities, understanding the various business tax credits and deductions can significantly reduce your taxable income. It’s essential to familiarize yourself with common deductible expenses, available tax credits, and proper record-keeping to make the most of these benefits when filing your income tax return. This will help you reduce your estimated tax payment and reduce your tax liability.

Common Deductible Business Expenses

For your small business, a broad range of expenses can be deducted to lower your LLC’s tax bill:

  • Startup Costs: You can deduct up to $5,000 in startup expenses such as market research, business planning, and legal fees. Here’s a comprehensive guide to LLC Tax Deductions
  • Operational Expenses: Running costs like rent, utilities, and office supplies are fully deductible.
  • Employee Salaries: Compensation paid to employees, including wages and benefits, is deductible.

Tax Credits Available to LLCs

Tax credits can directly reduce your tax liability:

  • R&D Tax Credit: If your LLC engages in research and development, you may qualify for a credit to offset some of these expenses.
  • Small Business Health Care Tax Credits: Offering health insurance to employees may make you eligible for a tax credit covering a portion of premiums paid.

Record-Keeping for Maximizing Deductions

Maintaining business tax records is crucial in maximizing deductions:

  • Keep Detailed Records: Save all receipts, invoices, and bank statements to substantiate your expenses.
  • Organize Tax Documents: Categorize documents by type of expense and tax year for easy access during tax filing or audits.
  • Tax Deadlines: Have your tax deadlines clearly marked in your calendar to ensure you don’t miss an estimated tax payment and are not rushing on tax day.

By adhering to these practices, you’ll be better prepared to claim all deductions and credits available to your LLC, potentially lowering your overall tax obligations.

Frequently Asked Questions

Navigating business tax deadlines can be complex, but understanding tax deadlines and consequences for your LLC’s business income is crucial. Below you will find specific FAQs to guide you through your LLC tax filing obligations for 2024.

What are the tax deadlines for 2024 to file LLC tax returns?

If your LLC is taxed as a disregarded entity or partnership, your tax return is due on April 15, 2024.

How can I obtain an extension for my LLC tax return due date?

To obtain an extension, file Form 7004 with the IRS before the original due date of your tax return. This grants you an automatic six-month extension to file your LLC’s tax return. Don’t forget, if you owe the IRS any amount in income tax, you must make your tax payment by this deadline to avoid any interest or penalities

Are S Corporation Tax Filing Deadlines the Same as LLCs for 2024?  

If your LLC has elected to be treated as an S Corporation, the deadline for filing your tax return is March 15, 2024. This is different from the standard LLC deadline for entities treated as disregarded entities or partnerships.

What are the consequences of failing to meet the LLC tax deadlines?

Failing to meet the filing deadline can result in late filing penalties, which typically amount to a percentage of the unpaid taxes for each month or part of a month that the tax return is late.

What is the maximum length of a tax extension for an LLC?

The maximum length of an extension is typically six months from the original due date of the LLC tax return. This extension changes the due date to October 15, 2024, for LLCs following a calendar year.

Should LLC taxes be filed jointly with personal taxes?

LLC taxes are not filed jointly with your personal income tax return unless the LLC is a single-member and is treated as a disregarded entity. If the LLC is treated as a partnership or corporation, it must file its own separate tax return.

Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult a tax, legal and accounting advisors before engaging in any transaction or submitting any IRS form.
Picture of Ramin Mohammad

Ramin Mohammad

Ramin Mohammad is a lawyer and CPA with over 15 years of experience including working in audits, teaching, and in big law. Ramin helps clients on both personal and business related tax issues ranging from a multitude of practice areas including tax structuring, planning and cross jurisdictional taxes. His client-base expands throughout the US and overseas offering tax consulting, tax planning and tax preparation.

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