How Many Taxes Do You Need To Pay For A Company?

Income Tax

All businesses except partnerships must file an annual income tax return. Partnerships file an information return. The form you use depends on how your business is organized. Refer to Business Structures to find out which returns you must file based on the business entity established.

The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay. If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. If you are not required to make estimated tax payments, you may pay any tax due when you file your return. For additional information refer to Publication 583.

Estimated tax

Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. For additional information, refer to Estimated Taxes.

Self-Employment Tax

Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.

Generally, you must pay SE tax and file Schedule SE (Form 1040 or 1040-SR) if either of the following applies.

If your net earnings from self-employment were $400 or more.
If you work for a church or a qualified church-controlled organization (other than as a minister or member of a religious order) that elected an
exemption from social security and Medicare taxes, you are subject to SE tax if you receive $108.28 or more in wages from the church or organization.

Filing Corporate Income Tax Return and Paying Tax

Corporate income tax returns are usually filed on Form 1120, U.S. Corporation Income Tax Return. Specific types of corporations, such as insurance companies, personal holding companies, homeowners' associations.

Corporate income tax returns are generally due on or before April 15 of the following year for a calendar-year corporation, or the 15th day of the fourth month following the close of the tax year for a fiscal-year corporation.

Corporations that fail to timely file an income tax return or pay the tax due may be subject to a penalty.

Filing of Corporate Returns

The due date for the filing of income tax returns by domestic corporations is the 15th day of the fourth month following the close of the tax year (April 15 for calendar-year corporations). C corporations with fiscal years ending on June 30 file their returns by the 15th day of the third month for tax years beginning before 2026, and by the 15th day of the fourth month for tax years beginning after 2025 (Act Sec. 2006(a)(3)(B) of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015). Foreign corporations, other than foreign sales corporations (FSCs) and former FSCs, that do not have an office or place of business within the United States must file returns no later than June 15, if they are calendar-year taxpayers, or no later than the 15th day of the sixth month following the end of the tax year, if they are fiscal-year taxpayers.

Filing of Corporate Returns

Corporations generally must pay income taxes at the time fixed for filing their returns, without regard to filing extensions.

Corporations must generally deposit income taxes electronically through the Electronic Federal Tax Payment System (EFTPS). Foreign corporations that do not have an office or place of business in the United States do not make these deposits; they pay their taxes to the IRS office where they file their returns. If a corporation does not want to use EFTPS, it can arrange for its tax professional, financial institution, payroll service, or other trusted third party to make deposits on its behalf.

Limited Liability Company (LLC) - Which Return to File

A Limited Liability Company (LLC) will file one of the following depending on its situation.

Single member LLCs
If the only member of the LLC is an individual, the LLC income and expenses are reported on Form 1040, Schedule C, E, or F.
If the only member of the LLC is a corporation, the LLC income and expenses are reported on the corporation’s return, usually Form 1120 or Form 1120S.
Note: Single-member LLCs may NOT file a partnership return.

Important tax return due dates

The most important tax deadlines in 2023 for C-Corporation (C-Corps) are the April 18th federal Form 1120 tax return, which can be extended to October 16th, and the March, June, Sept and December Delaware Franchise estimated payments.

Due Date

Description

JAN 31

Send 1099s to Contractors. Send W2s to employees. 1099-MISC for nonemployee compensation must also be e-filed to IRS on this date.

JAN 31

File Form 8809 for a 30-day extension to file W2s and 1099-MISC for nonemployee compensation.

JAN 31

Send 1095-B and 1095-C forms to Employees.

JAN 31

Claim R&D Tax Credits on Form 941, and file annual Federal Unemployment Tax Act (FUTA) return on Form 940.

MAR 1

IRS ACA Compliance 1094-B, 1095-B, 1094-C and 1095-C filings are due (if paper-filing, due MAR 31 if eFiling). File Form 8809 for a 30-day extension.

MAR 1

Delaware Annual Franchise Report filing deadline: Pay a min. of $400, +more if you have significant funding. You can estimate this franchise tax using our Delaware Franchise Tax Calculator.

MAR 2

IRS 30-day automatic extension: provide Form 1095-B and Form 1095-C to Employees.

MAR 31

IRS ACA Compliance 1094-B, 1095-B, 1094-C and 1095-C filings are due (eFile).

MAR 31

1099s and W2s must be e-filed with the IRS by this due date.

APR 18*

C Corp Form 1120 Tax Return due. The Federal Form 1120 is the U.S. Corporation Income Tax Return, which the IRS has companies use to report their income, losses, credits, etc., and to figure the income tax liability of the corporation. Can extend the deadline to OCT 16*.

APR 18*

File the R&D Tax Credit Form 6765 with your tax return. Can extend to OCT 16*. We strongly recommend working with a qualified CPA to prepare this form in conjunction with your Form 1120 if you are a high-growth startup – if your company is going to be acquired by a major technology company, that company’s CFO will use a strong tax team to do due diligence on this.

APR 18*

Federal Quarterly Estimated Tax 1st installment.

APR 18*

Due date for making contributions to individual retirement accounts for 2022 (Employee Benefits).

APR 30

Claim R&D Tax Credits on Form 941.

JUN 1

Delaware Quarterly Estimated Franchise Tax, Pay 40% of estimated annual amount (if annual amount expected to exceed $5,000).

JUN 15

Federal Quarterly Estimated Tax 2nd installment.

JUL 31

Claim R&D Tax Credits on Form 941.

SEP 1

Delaware Quarterly Estimated Franchise Tax. Pay 20% of estimated annual amount (if annual amount expected to exceed $5,000).

SEP 15

Federal Quarterly Estimated Tax 3rd installment.

OCT 16*

C Corp Form 1120 Tax Return final due date if extension was filed.

OCT 31*

Claim your Research and Development Tax Credits on Form 941.

DEC 1

Delaware Quarterly Estimated Franchise Tax. Pay 20% of estimated annual amount (if annual amount expected to exceed $5,000).

DEC 15

Federal Quarterly Estimated Tax 4th installment.

Thinking of Selling Now or Later?

Get your free valuation and marketplace readiness assessment.