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It’s 2023 tax time! Opolis is right here to assist determine pertinent deadlines and aid you keep knowledgeable about any alterations in legislative and tax codes that would influence each you and your organization. As all the time, in search of recommendation from a professional tax skilled is really useful for help in making ready your taxes.
Upcoming Tax Deadlines You Ought to Know
March 15, 2024
- Deadline for S Company tax filings for tax yr 2023 (Kind 1120-S)
- Deadline for current entities to elect S Company standing for tax yr 2024 (Kind 2553)
March 30, 2024
April 15, 2024
- Deadline for C Company tax filings for tax yr 2023 (Kind 1120)
S Companies
With S Companies, enterprise earnings passes by way of to its house owners and is taxed at your particular person fee whereas sustaining private legal responsibility safety. It’s a mix of one of the best of Sole Proprietorship and Companies from a tax and legal responsibility perspective.
Submitting IRS Kind 1120-S is due by Thursday, March 15, 2024, with an prolonged deadline of September 15, 2024. For non-calendar yr S companies, the deadline is the fifteenth day of the third month after the fiscal yr ends.
If you’re contemplating additional professionalizing your LLC, to be handled as an S Company it’s essential to full IRS Kind 2553 inside 75 days of the tax yr’s begin (March 15) or through the previous tax yr (Late election reduction is feasible utilizing Rev. Proc. 2013-30).
New to S Companies? Right here’s the fundamentals:
S Companies are superb instruments to supply higher taxation technique alternatives whereas shielding Sole Proprietors from legal responsibility threat. Nonetheless, understanding the ideas is crucial for these considering this tax designation.
An S Company shouldn’t be a definite enterprise entity; slightly, it represents a particular tax election sought by an LLC or C Company by way of the IRS. Electing S Corp standing includes the submission of Kind 2553 (directions beneath). The distinctive characteristic of an S Company lies in how its company earnings, losses, deductions, and credit are distributed—they move by way of to the shareholders, who’re the corporate’s house owners.
To qualify as an S Company for tax functions in 2024, current LLCs and C Companies must submit their election inside a particular timeframe—two months and fifteen days, to be precise–after the graduation of their 2024 tax yr. For example, if an organization’s tax yr started on January 1, 2024, the deadline for submitting IRS type 2553 is March 15, 2024. New entities created in 2024 have the identical two months and fifteen days after formation to make their election for that tax yr.
Time is ticking! Consulting with a tax advisor or accountant is really useful to evaluate the suitability of an S Company election for your enterprise.
Kind 2553: Tips on how to elect S Corp Taxation Standing
The next components are wanted with the submission of Kind 2553:
- Contact info.
- The specified graduation yr for the S Company election.
- Info on Company Shareholders/LLC Members.
- A proof, if relevant, for any delay in submitting.
- Pertinent particulars about your current company.
C Companies
C Company Taxes require separate authorized entities from enterprise house owners, resulting in particular person tax returns for each the entity and the person. For these following a calendar yr, IRS Kind 1120 (U.S. Company Earnings Tax Return) is due by April 15, 2024. Companies in search of an extension should request this by the unique due date of April 15, 2024, which grants an prolonged submitting deadline to October 15, 2024. Entities with fiscal years deviating from the calendar should file by the fifteenth day of the fourth month after their fiscal yr concludes. Estimated tax funds utilizing Kind 1120-W are usually required if the company anticipates owing over $500 in taxes.
Company earnings taxes face a flat 21% fee, with Kind 1120 requiring important particulars such because the company’s identify, handle, Federal Tax ID Quantity (EIN), asset checklist, and revenue/loss info.
Different Reporting Info & Key Tax Modifications
New submitting requirement for all entities in 2024:
- Efficient Jan. 1, 2024, FinCEN is now requiring that each one companies adjust to the CTA’s Helpful Possession Info Reporting Rule by including your possession info to a federal database.
- Our associates at Freelancers Union put collectively THIS GUIDE that can assist you higher perceive your submitting obligations to keep away from hefty fines and penalties.
- Entities that existed earlier than January 1, 2024, may have till January 1, 2025, to conform
- These created on or after January 1, 2024, may have 90 days from the date of formation to supply this info to FinCEN.
Key Modifications for 2024 Enterprise Taxes:
- Normal mileage charges: Elevated to 67 cents for 2024 from 65.5 cents in 2023.
- Fee apps and on-line marketplaces: The IRS delayed the requirement for 1099-Okay types for digital funds over $600; the brand new reporting threshold phased in at $5,000 for 2024.
- Meals and leisure deduction: Lowered to 50% for the tax yr 2023; leisure bills are not deductible.
- Cross-through enterprise house owners: Eligible for a 20% deduction of certified enterprise earnings with elevated earnings caps for 2024.
- Bonus depreciation: Decreased to 80% for the tax yr 2023, lowering by 20% every subsequent yr.
- Part 179 depreciation: Restrict of $1,160,000 for 2023; word separate limits for autos.
Opolis Makes Taxes Easy for Solopreneurs
Pondering of turning into an Opolis Member?
Once you’re a Member of the Opolis Employment Commons, you instantly achieve entry to our suite of legitimately premium advantages like Medical, Dental, Imaginative and prescient, Life & Incapacity, and plenty of extra. We additionally simplify your taxes as a solopreneur.
Automated Tax Deductions:
As a member, Opolis mechanically calculates your payroll tax withholdings (Employer and Worker parts of FICA, FUTA, SUTA, State & Native taxes, and many others.) and remits these quantities to the right jurisdictions in your behalf. No payroll tax licenses are wanted below your EIN with Federal, State, or Native jurisdictions.
We Make Tax Submitting Straightforward:
As your Employer of Document, we are going to ship you a W2 as an Worker of Employment Commons LCA on the finish of every calendar yr. Additionally, you will obtain the accounting info essential to ebook your entity’s payroll bills as enterprise bills.
For extra info on how Opolis may help you navigate this tax season, go to https://freelancersunion.org/opolis/ or attain out to Membership@opolis.co mentioning Freelancers Union, and we’ll be pleased to help. Completely happy Filings!
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