Frequently Asked Questions
The Tax Filing Process for US Businesses
What are the tax deadlines for LLCs?
The 2019 tax deadline for an LLC filing Form 1065 for a partnership is March 15, 2019. If you’ll be filing for an extension, the deadline is September 16, 2019.
If you make an election to be taxed as a C-Corporation, the deadline will be on April 15, 2019 or October 15, 2019 for extended filing. Note that the payment of the tax due is on the original due date of the tax return.
How do I file if one owner is foreign and one is a US citizen?
You would file a partnership Form 1065 unless you’ve elected to be taxed as a C-Corp through Form 8832. The S-Corp structure does not allow foreign owners.
How do I file if I am a US-owned LLC with more than one owner?
The LLC would be considered a partnership in this case and file a Form 1065, unless Form 8832 (an election on how you choose to be taxed) is filed to be taxed as a C-Corp or S-Corp.
If I’m a single member US-owned LLC, how do I file?
In this case, you are considered a disregarded entity. If no Form 8832 is filed (an election on how you choose to be taxed), you will file on Schedule C. However, through Form 8832, you can elect to be taxed as a C-Corp or S-Corp, filing Form 1120 or 1120-S, respectively.
If my company ships or manufactures goods from a non-US country, can we be elected as a Disregarded Entity and not pay taxes at all as an LLC?
Unfortunately, no. A Disregarded Entity is for individuals that file an individual tax return. It would not apply.
Do corporations have to file income taxes quarterly or annually?
You are required to file your income taxes annually.
However, The Tax Cuts and Jobs Act passed in 2017 requires some companies to also report estimated taxes and employment taxes quarterly. To find out if your business falls under this obligation, you can see details in our blog here.
How does the taxation process work for businesses in the US?
Most businesses are required to file two returns each year, state tax return and federal tax return. Federal tax returns must be filed each year regardless of business activity. Tax due is computed at 21% of net income at federal level while state income tax varies from state to state.
What are the tax deadlines for US Corporations?
For calendar year C Corporations, the deadline is April 15. For fiscal year C Corporations, other than June 30, tax returns are due on the 15th of the fourth month following the close of the fiscal year. Tax returns of corporations using fiscal year ending June 30 are due on Sep 15th.
Corporations can file for a six-month extension, but the extension should be filed on or before the original due date of the return.
I am selling/delivering goods all over US; am I subject to sales tax?
Sales taxes are taxes placed on the sale or lease of goods and services. Sales tax rates and what is being taxed vary by jurisdiction.
If you have sales tax “nexus” in a state, then you are required to register for a sales tax permit in that state. Sales tax registration processes, collection, reporting and filing vary from state to state.
“Sales tax nexus” occurs when your business has some kind of connection to a state. This is also considered as “physical presence” or “economic connection” including having an office, an employee, a warehouse, store inventory or an affiliate.
If we receive income from a crowdfunding platform in January, will we have to report taxes for the following year or count them for the current year?
In general, in the US, funds raised on a crowdfunding platform are considered income.
The receiver of funds can offset the income from their funding project with deductible expenses that are related to the project and accounted for in the same tax year.
For example, if the company owner receives $1,000 in funding and spends $1,000 on their project in the same tax year, then their expenses could fully offset their funding for federal income tax purposes. If the company owner receives funding in one year and spends money on their project in a later year, consider whether their expenses can still offset their funding using the accrual method of accounting.