Taxes

There are many different types of taxes your business may be subject to paying. It is important to become familiar with what is required for your specific business and when they are due. The following are the most common business taxes and their due dates.

• Annual
  • Business (CORP & LLC)
    • March 15th
    • For a C-Corp, if the fiscal year is different from the calendar year, C corporations must file by the 15th of the fourth month following the end of their fiscal year.
  • Individual (personal)
    • April 15th (if this falls on a weekend, the next business day. This year, the due date is April 18, 2022)
  • Sales Tax – For California, the CDTFA requires different filing frequency depending on how much you have in taxable sales in a given period. You can find more information here: https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax-returns-filing-dates.htm
    
    • Monthly FIlers – Due the last day of the month FOLLOWING the month you are filing for
      (Jan’s filing is due by Feb. 28th)
    • Quarterly Filers – Due the last day of the month FOLLOWING the end of the quarter you are filing for.
      (Q1’s filing (Jan-Mar) is due by April 30th)
    • Quarterly Prepayment Filers – Filing is still due by last day of the month FOLLOWING the end of the quarter, but prepayments are to be made in the first 2 months by the 24th
      (In Q1 you’ll make a payment for January by Feb. 24th, a payment for February by Mar. 24th, then submit the filing by April 30th and pay March’s payment at that time)
  • Estimated Taxes
    

    “Who must pay estimated tax? Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.

    Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed.”
    IRS: https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

    • Methods of calculating:
      • Based on net profit on P&L (bookkeeping needed)
      • Flat percentages
    • Due Dates: 
      • January 1 to March 31 – April 15
      • April 1 to May 31 – June 15
      • June 1 to August 31 – September 15
      • September 1 to December 31 – January 15 of the following year