How often you have to figure your taxes depends on where you are. In the United States, there are Quarterly Taxes and of course year end taxes.
The way your business is setup will make the difference in which tax form you need to fill out and send in, as well as when you need to send them in. It is really important that you know how you business is setup. If you are setup as a LLC, you cannot file your business taxes as a Sole Proprietor. Your payment dates are going to be due based on how your business is setup. If you are a fiscal-year taxpayer then you will need to change the dates accordingly.
Now, we are not tax experts, but we can point you in the right direction for what you need to do. Here are the standard payment dates, form names and IRS pages for the most common options, depending on how you have setup your business.
Sole Proprietorship (form 1040/1040-ES) – This is an unincorporated company with a single owner. The business may just be the name of the owner, or it may have a business name.
QUARTER Due Date
January – March April 15th
April – June June 15th
July – September September 15th
October – December January 15th
Partnership (form 1065/1065-B) – Multiple parties, the partners, own the company and work to further its goals. In the United States, different states have different rules for partnerships. The federal due date is April 15th, and each partner should have a copy of the K-1 or K-1 Substitute by March 15th.
Corporation (form 1120) – A company that has been authorized to act as a single entity. The form 1120 is due on the 15th day of the third month after the end of the corporate tax year, which may be a fiscal year and not follow the standard calendar. However, estimated tax payments are due according to the following chart
QUARTER Due Date
January – March April 15th
April – June June 15th
July – September September 15th
October – December December 15th
A 2553 form can be filled out and sent in to choose S Corporation treatment, but must be sent in no later than the 15th day of the third month of the business' fiscal tax year.
S Corporation (form 1120S) – A small business corporation, there are a number of rules for being an S Corporation. Similar to the Corporation set up, but an S Corporation has to send each shareholder a K-1 form as well.
Limited Liability Company (LLC) – LLCs combine the ease of taxation that is found in a Sole Proprietorship or Partnership with the limited liability of a corporation. LLCs are also limited in some locations. LLCs also have a collection of different forms to send in depending on if the LLC is owned by an individual (form 1040 C, E or F), or if it is owned by a corporation, then it will be either a 1120 or 1120S.
If there is anything you do not know about your taxes, you can ask an accountant or checkout the IRS website. There are also good resources at the SBA website.
Good Luck and Good Sales!
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