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Q4 2023 Estimated Tax Payments Due 1/15/24
Are you ready for the last quarterly tax payment of 2022 as a business owner?
- January 15: Q4 2023 estimated tax payment due
With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines.
The last major business tax deadline is October 16, when your extended C-corporation returns are due. Are you ready to submit everything to the IRS? With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines.
Are you ready to submit your extended partnership and S-corporation returns? The deadline is September 15, and will be here shortly. With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines. The next deadline is Oct 16: extended C-corporation returns due.
Are you ready for the next quarterly tax payment deadline as a business owner? - September 15: Q3 2023 estimated tax payment due - January 15: Q4 2023 estimated tax payment due With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines.
Are you ready for the next quarterly tax payment deadline as a business owner? - June 15: Q2 2023 estimated tax payment due - September 15: Q3 2023 estimated tax payment due - January 15: Q4 2023 estimated tax payment due With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines.
Taxes for C-Corporations are due on April 18. Are you prepared to send everything to the IRS? With decades of experience dealing with accounting, tax, and legal project s, the Landra Raymond & Associates team can help ensure you're ready for deadlines. Future deadlines include: - Sept 15: Deadline for extended partnership and S-corporation returns - Oct 16: Deadline for extended C-corporation returns
As a business, are you ready for quarterly tax payment deadlines?
- April 18: Q1 2023 estimated tax payment due
- June 15: Q2 2023 estimated tax payment due
- September 15: Q3 2023 estimated tax payment due
- January 15: Q4 2023 estimated tax payment due
With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines.
Are you ready for key 2023 business tax deadlines?
- Mar 15: Taxes due for some business types (partnerships, multi-member LLCs, and S-Corporations) due
- Apr 18: Taxes for C-Corporations due
- Sept 15: Deadline for extended partnership and S-corporation returns
As a small business owner, you wear many hats, from accounting to sales. Managing all business aspects can be stressful enough, but then tax season comes along. While some people may worry, filing taxes doesn’t have to derail you. By preparing early, you can be confident that you have handled tax season. Separate Personal from Business Small business owners' biggest mistake is mixing their personal and business expenses. Not only does this expose your personal assets to unnecessary risk, but it also makes managing your finances more difficult. If you haven’t done so already, separate your personal and business expenses and open different accounts for the company. Funnel all payments and costs for the business through these accounts. Do not use your personal cards for the business. Instead, take out a separate credit card in the business name. Gather and Organize Your Records You can’t begin to file taxes if you don’t have your documents in order. The best solution is to organize everything from the beginning, but not every small business owner does this for various reasons. If you fall into this category, try starting sooner rather than later, or you may encounter delays in filing. Digitize Protect your documents by making a digital copy of them. Save PDF files for all your receipts, purchase orders, and accounting-related documents. You can then organize the documents into folders, making it easier to find what you need months or even years later. It also saves you from carting a large box of papers around. Use Accounting Software If you haven’t already done so, start using accounting software for the business. This gives you a centralized location where you can manage all your business accounting in one place. Look for software that is designed for small businesses. It should be simple to use, affordable, and scalable to grow with your business. Review Payroll If you are the only person who works for your business, you can skip this step unless you are paying yourself a W2. You will need to review your payroll if your small business has employees. Your business should have remitted taxes, which means withholding a percentage of each employee’s paycheck for tax payments. If you or your payroll service didn’t withhold taxes, your business could be on the hook for these, which could inflate your tax liability. Collect Documents Whether you file your taxes or have help from an accountant, you will need all your business documents to file taxes correctly. Making sure you have everything organized and ready when you meet with your accountant will make things easier for everyone. Taxpayer identification number (EIN or SSN) Income statement Balance sheet Receipts Bank statements Credit card statements Payroll records Previous year’s tax return Estimated tax payments Check Your Deadlines Everyone knows April 15 as Tax Day. However, this isn’t the only deadline that the IRS has. The deadline could be different depending on what you are filing and the entity under which you are filing. For example, if you are self-employed, your final deadline for making an estimated tax owed payment is January 17, 2023. Your federal tax return filing deadline can differ depending on your small business formation. Sole proprietorships: Schedule C and personal tax return: April 17, 2023 Partnerships: IRS Form 1065: March 15, 2023 Multimember LLCs: IRS Form 1065: March 15, 2023 S-corporations: IRS Form 1120S: March 15, 2023 C-corporations: IRS Form 1120: April 17, 2023 Similarly, extension deadlines can vary based on your small business filing status. While you may have the best intentions to file your business taxes on time, this doesn’t always happen. Do not rush to file a tax return that isn’t complete and correct. Instead, filing for an extension can give you extra time. Sole proprietorships: October 16, 2023 Partnerships: September 15, 2023 Multimember LLCs: September 15, 2023 S-corporations: September 15, 2023 C-corporations: October 16, 2023 Finally, if your small business has employees or works with independent contractors, be aware of the January 31 deadline, which is the day you need to send out W-2s and Form 1099-NECs. Consider Tax Deductions Businesses can claim different tax deductions than individuals. These can vary based on your business filing status. Your accountant can help you understand what deductions and credits are available to you. Below are some of the common deductions that are available to small business owners. Business mileage Home office deductions Travel deductions Disabled access credits Small business health insurance tax credits Charitable contribution deductions Hire a Professional Tax law can become an overwhelming and consuming web of regulations. Rules can change from year to year, making things even more confusing. Because of this, you shouldn’t assume that everything is the same as in previous years. Talk with a tax professional who can guide you on the latest tax changes. They make it their job to know the changing IRS laws and how they might affect their clients. As tax deadlines loom closer, tax professionals’ schedules become more hectic and demanding. Scheduling your consultations and meetings early helps you get ahead of the ball and avoid unnecessary stress. Check Your Business Filings Before filing your taxes, check your business status to know what forms you’ll need. Additionally, this is an excellent time to confirm your business status. All too often, individuals choose a business status and then never look at it again. This can create problems later. For example, a sole proprietorship may have been the best choice when you first started the business. However, a few years in, this may no longer be the best status for your small business. Tax season is a good time for this evaluation because you can compare tax liabilities. You may find that your future planned small business growth should also include changing your business status. Can You Afford Your Tax Liability? Depending on your situation, you may find yourself owing the IRS. If this happens, you need to have a plan for how you will pay. You'll need to arrange for payments if you can’t afford to pay your tax liability in one lump sum. There are a few options available. Arrange for a monthly installment payment to the IRS Offer a compromise (tax debt settlement) Request a payment postponement Get Ready for the Next Tax Season With the new year starting, there is no better time than the present to start prepping for tax season. Start by gathering your financials and tax documents. Get your business records in order. Confirm your business status and the applicable deadlines. Once you have everything in order, reach out to a professional. They can help you determine what’s missing and prepare your tax documents for the filing season. Schedule an appointment today and get ready for the next tax season with our team of experienced professionals.
When starting a new business, choosing a name, brand colors, and logo are all creative and exciting tasks. Designing a website can be fun as you select a layout and craft the right words to give your company legitimacy. But do all these things make your new business real?
When starting a new business, choosing a name, brand colors, and logo are all creative and exciting tasks. Designing a website can be fun as you select a layout and craft the right words to give your company legitimacy. But do all these things make your new business real? Unfortunately, no. You have to do some not-so-fun legal documentation to ensure your new venture is protected and you’re set up to manage tax implications. The first step in forming your new business is deciding what type of legal entity (or business structure) will work best for you. The business entity is the legal classification that dictates the businesses' legal rights, tax obligations, ownership liability, and operational implications. You will typically set up your business entity on a state level. Choosing the correct entity type is crucial because it influences many elements of your business. There are serious consequences that come with your choice. Different entities offer various levels of liability protection, tax liabilities, and ownership responsibilities. Choosing the wrong entity could result in your paying more taxes than necessary or exposing your personal assets to more harm than you’re comfortable with. Sole Proprietor For many small business owners, a sole proprietorship is their first choice because the startup costs are low. You can quickly evolve the business into another entity as it grows. In addition, sole proprietorships are unincorporated businesses with no legal distinction between the business and the person owning and running it. Advantages: Appealing because it is the most affordable and easiest entity to form. As the only owner, you have complete control over your business decisions. You also can save on taxes because you will file through your personal tax filing and don’t need to file separately for the business. Disadvantages: Because there is no distinction between the owner and business, this can leave you open to liability and puts your personal assets at risk. Partnership If you plan to form a business with one or multiple individuals, you can choose this option. This will give both parties equal ownership of the new company. Partners can contribute to the business in several ways, including labor, knowledge, skill, or money. Each partner will share in the profits the business generates. There are two types of partnerships, general partnership (GP) and limited partnership (LP). A general partnership assumes that all the partners agree in advance to either evenly share or have specific percentages to control and liability. Limited partnerships allow you to limit the control or liability of a particular partner. Advantages: In this scenario, you will have someone to share the responsibility of resources and liability with. You’ll also find partnerships relatively easy to form and manage. In addition, the taxes are simple, with each partner claiming their portion of the business income on their personal taxes. This is called a pass-through tax model. Disadvantages: Getting partners to agree on every decision you make. The more partners you have, the more complicated this becomes. There is also the issue of personal liability. There’s no distinct separation between the business and partners’ personal assets, which means you still take on personal risk. You’re also paying personal taxes instead of business taxes, resulting in you paying more than necessary. Limited Liability Company (LLC) An LLC is like a hybrid business entity. It’s easy to set up like a partnership but offers more liability protection like a corporation. If you want to be technical, it’s a type of corporation. There are options for how you file your LLC taxes. A single-member LLC would file the taxes. LLCs with two or more members can file as a partnership or corporation. Advantages: If you are looking for more liability protection for your personal assets, an LLC can provide this to you. They also don’t have as many management requirements as corporations. This makes them a good balance between partnerships and corporations. Disadvantages: States limit the types of businesses you can form under an LLC entity. Therefore, you must check that your business qualifies before starting your business. More tax forms are required, which can make fulfilling your tax liabilities more of a challenge. C Corporation If you are looking for the most significant level of liability protection, then consider forming a C corporation. This is a separate legal entity that operates independently from the owners. Unlike the other entities, the entity issues shares, and the owners of these shares become the company owners. Major brands that have stock traded on the exchange are C corporations. For example, Apple, McDonald’s, and Starbucks. They have shareholders, a named board of directors, and officers. Not all corporations have to be big like this, though. A single person can fulfill all these roles and control their business entirely. Advantages: This offers complete personal liability protection. Your personal assets are safe from business liability and debt. It’s also easier to raise more capital for future growth because you can issue stock options. Finally, you have more tax deductions and savings available to you when filing for the business. Disadvantages: This is the most expensive and complicated type of business to form, often starting at several hundred dollars just for the filing fee. You must also comply with many regulations that affect everything from tax filing requirements to fees and filing forms. Additionally, because they are separate legal entities, you face paying double taxes because you must file for the business and yourself. You can't claim losses on your personal taxes if your company has losses. S Corporation An S corporation is like a C corporation because it retains liability protection for its owners. It’s different because it gets treated differently for tax purposes. Profits and losses are reported through the owner’s personal tax filings. Advantages: As an owner or shareholder, you won’t have personal liability or risk your personal assets. However, there are exceptions for extreme extenuating circumstances. Additionally, the fact that it’s a pass-through entity means you won’t have to pay double taxes. Disadvantages: This is one of the more expensive entities to form. You have more restrictions imposed on how you issue the stock for your company. You must also comply with all formality requirements like establishing bylaws, holding shareholder meetings, and naming a board of directors. Nonprofit Corporations If you are a new business owner who is less concerned about profit and more about helping others, you may want to consider a nonprofit corporation. This type of business exists to help others. For example, the American Red Cross, Salvation Army, and American Heart Association are nonprofit corporations. Advantages: The most significant advantage is the tax exemption/deduction status. You may also qualify for public and private grants, giving you more capital for growth. In addition, those associated with the entity are not personally liable to its creditors. Disadvantages: Because there are so many significant benefits to this type of entity, getting one established and maintaining it is not easy. The cost of formation is high, requiring a considerable investment of time, money, and effort. Prepare to do a ton of paperwork. Once your business is formed, your finances are open to inspection. The general public can request your state and federal filings to learn more about your financial statements to ensure you are genuinely the nonprofit and charitable company you claim to be. Doing Business As (DBA) Doing business under an unregistered name is illegal, and that’s where a DBA comes in. If you have a sole proprietorship or general partnership, you must do business under your name. If you don’t want to do this, you need to file a DBA with the name you want to use. This doesn’t register your business or create an entity. It puts the world on notice that you’re operating under a chosen name. It doesn’t provide legal protection or a special tax filing status. Form Your New Business As you can see, several factors go into choosing the best legal entity for your new business. If it all seems overwhelming and confusing, speaking with a professional can help clear the waters. Our team of associates can guide you through the process of choosing and forming your legal entity. Request a meeting and sit down with a member of our team to start the process of forming your new business entity.
