Some businesses might benefit from filing their taxes later, rather than sooner. If your business taxes pass through to your personal taxes, filing later gives you more time to max out your retirement deposits, find all those receipts, or get your deductions in order. However, you have to remember, while you can get an extension to file your taxes, you still have to pay on time. Here are a few things to keep in mind when filing for an extension for your business.
Sole Proprietors and Single-Member LLCs
Different types of businesses file extension requests on different dates. They also have different request forms. If you are a sole proprietor or a single-member LLC, you should file Form 4868 to ask for an extension. You must file the form by April 15. When you file the form, you also need to estimate your taxes and pay any taxes due. If you do not pay the taxes owed by April 15, you will have to pay the penalty.
Partnerships and Multi-Member LLCs
If you are a partnership or you have more than one member in your LLC, you need to file Form 7004. The form is due on April 15, along with payment for any taxes you estimate are due. If you do not forward the estimated amount, you will have to pay the penalty when you file your taxes.
Corporations and S Corporations
As with partnerships and multi-member LLCs, corporations and S corporations apply for an extension via Form 7004. However, the deadline is a month earlier – you must request the extension by March 15. As with other entities, you must estimate and pay any taxes due when you file the extension or pay the penalty. You can mail Form 4868 and Form 7004 via regular mail or e-file the form, along with your payment. If you are filing the extension closer to the due date, you should e-file the form to ensure that it arrives on time.
Paying Business Taxes
You cannot get an extension to pay your taxes. When you file an extension, you must submit the estimated tax due, if any. Many people pay quarterly, so you might not have taxes due, other than your regular quarterly taxes. If you usually owe less than $1,000 and elect to file yearly, you will need to estimate and pay your taxes when you file the extension – or before the due date, if you file your extension earlier than March or April.
Why You Would File an Extension If You Have to Pay Anyway
As mentioned above, people have several reasons to file an extension to get an extra six months to file their taxes. Business taxes can be complicated, depending on how you set your business up. Just getting all of the receipts together for your tax attorneys takes time, even if you are well-organized. Filing later allows you to make sure you have every receipt to document your exemptions, or to get copies of receipts if you lost some.
Self-employed people have more time to fund retirement plans – but be careful – if you couldn’t do it in a year, you have six months to do it the next year, unless you file for an extension. And then, you would only have a year to max out your contributions.
Getting Deductions in Order
You have an extra six months to work with your business law attorneys to get your tax deductions in order. You’ll need to know which deductions you can and cannot take, though your tax attorney will know this information. The extra time is helpful if your attorney notifies you of a deduction and you need to find the documentation for the deduction.
Improving the Accuracy of Your Return
Granted, you should already have everything you need, but many people leave taxes to the last minute, which means that it’s easier to miss something and make mistakes. When you have an extra six months from filing an extension, you have time to go over your taxes with a fine-toothed comb.
Contact France Law
Business taxes with the help of a professional tax attorney, like France Law, could not only help you file an extension, but the team can also you and your business estimate your payment and complete your taxes by the extended due date. If you need help filing your business taxes for this year or next year’s taxes, contact the experts at France Law Firm today. Having a knowledgable and experienced tax attorney on your side can help you file with ease and understanding. Give us a call at (850)-224-1040 today to get started!