When Are Business Taxes Due in 2022?

We all know individual taxes are normally due April 15th, but in 2022, that deadline is April 18th. But what if you own a business? Understanding when business taxes are due depends on the kind of business you have, so let’s start by taking a look at all your options for incorporating your business.

Sole Proprietorship

A sole proprietorship does not separate your business assets from your personal assets, which means you file your business taxes as part of your personal income tax return. As a result, if you have a sole proprietorship, the business taxes are due by April 18th along with your personal taxes.

Partnership

A partnership is like a sole proprietorship for a business with multiple owners. It does not separate business assets from personal assets, which means all the partners are responsible for any debts the business may owe. Each partner pays their share of the business’ taxes along with their personal tax return. For a sole proprietorship, business taxes are also due by March 15th along with your personal taxes.

Limited Liability Company (LLC)

A business has to meet certain requirements in order to be approved to incorporate as an LLC, but for a company that meets those requirements, business assets can be separated from personal assets. You can still file your business taxes along with your personal taxes, but the main benefit an LLC provides is that, if the business goes into debt, your personal assets are not at risk. As with a sole proprietorship and partnership, LLC business taxes are due by April 18th.

S Corporation

Incorporating your business as an S corporation means you want your company to be treated like a corporation but on a smaller scale. Each business owner is responsible for including their portion of the business income on their personal tax returns, but as with a partnership, your business taxes are due by March 15th.

C Corporation

A C corporation is for larger corporations, and businesses that have been incorporated as C corporations file corporate taxes separate from the personal income taxes of the business’ owners. For C corporations, business taxes are due by April 18th.

Filing an Extension

Regardless of the type of business you own, you can file an extension to file your tax returns at a later date. You have to file the extension by your normal tax deadline, and if your normal tax deadline is in April, your extension deadline is October 17th, 2022. If your normal tax deadline is in March, your extension deadline is September 15th.
Just keep in mind that, if you don’t pay your taxes by either March 15th or April 18th, depending on when your business taxes are due, the IRS will charge you a late fee on your unpaid taxes. You can pay your taxes in full by either March 15th or April 18th, and then file your tax returns by the October deadline, or you can pay part of your taxes by either March 15th or April 18th and pay the rest when you can. The late fee only applies to the portion of your taxes that are paid after that initial due date, so you’re better off paying as much as you can to avoid a higher late fee.

Tax Document Checklist

If you’re filing an extension on your taxes, you’ll need Form 4868 to file for that extension. When it’s
time to do your tax return, here are all the documents you’ll need, regardless of the type of business you
own:
 Form 1099 and Form 1096
 W-2 and W-3
 Form 940 and Form 941 for both federal and state payroll returns
 Records of all the invoices your clients paid
 Records/Receipts of all your business expenses, including what each expense was for
 Records/Receipts of the mileage you drove for work
 Income statement
 Balance sheet
 Bank and credit card statements
 Payroll documents
 Last year’s business tax returns
 Partnership agreements
 Asset purchase details

As a business owner, you have enough on your plate without having to worry about getting your papers in order before taxes are due. Why not let The Bookkeeping Doctor give you peace of mind by getting all your financial documents ready for tax season so you don’t have to worry about filing late? Schedule your FREE consultation now to get started.