LLC Tax Deadline 2023: Key Deadlines for Your Small Business

Most small businesses must calculate and file tax returns with the IRS multiple times per year. It's a crucial aspect of operating a business that all owners should be familiar with to remain compliant and avoid repercussions.

How and when do you pay taxes as a small business? Why is it so hard to find a straight answer about your filing deadlines for tax year 2023? Use this guide to get quick, comprehensive answers to those tax questions. 

Business Tax Deadlines

Income tax is pay-as-you-go, and the IRS expects business owners to make regular quarterly payments throughout the year based on revenue.

Quarterly estimated tax due dates for tax year 2023 are as follows: 

• April 18, 2023
• June 15, 2023
• September 15, 2023
• January 16, 2024

Freelancers and independent contractors must also file Form 1099-NEC with the IRS on January 31 for non-employee compensation.

Failure to submit on time or to accurately calculate what is owed can result in fines and increased scrutiny from the IRS. IRS fines aren’t fixed and will accumulate until action is taken, so submitting as soon as possible is in your best interest.

Personal Tax Filing Deadline vs. Business Tax Deadline

The primary deadline for a personal income tax return is April 15 every year. If the 15th falls on a weekend or holiday, your income tax return will be due the following business day. The deadline for 2023 was Tuesday, April 18.

Whatever the state of your business, your personal return will still be due on that date. However, the due date for your business may vary based on your fiscal year and how you choose to file with the IRS. Some LLCs will have to file a business return apart from their personal return, while others will not. 

What’s an LLC, and Why is This So Complicated?

A limited liability company, commonly called an LLC, is a flexible business entity established at the level of the state. States allow individuals with varying criteria to organize an LLC to separate their assets and identity from the business entity.

However, an LLC has no separate tax process on the federal level. The IRS does not recognize an LLC as its own business category. This means every LLC can effectively choose which approach to follow for their federal income tax. LLCs can use IRS Form 8832 and elect to classify themselves under one of these categories: 

• C corporation
• S corporation
• Sole proprietorship
• Partnership

Types of LLCs and How to File

When do LLC taxes need to be filed with the IRS? The date will depend on how your business is classified with the IRS for tax purposes.

S Corporation

An S corporation or S corp is a small corporation that files IRS Form 2553 to receive that tax status. The filing deadline for tax year 2023 was March 15. For an alternative fiscal year, your business return will be due on the 15th day of the third month after the year ends.

Your March 15 return will use tax Form 1120-S, an informational return. You report your profits and expenses to the IRS, but your business is not taxed directly.

An S corp is a pass-through entity whose income is untaxed and goes directly to business owners who will report and pay taxes for it on their personal returns.

Along with 1120-S, you will file Schedule K-1 to report how LLC members split corporate profits. Then, each member will file Form 1020.

C Corporation

A C corporation is any corporation that has not filed separately with the IRS to be taxed as an S corporation. If you file your tax return as a C corporation, your LLC tax filing deadline for tax year 2023 was April 18. This assumes you're following the calendar year. 

Most businesses follow the calendar year, starting their fiscal year in January and ending in December. If your business has an alternate fiscal year offset from the calendar year, your due date will be the 15th day of the 4th month after your fiscal year ends.

All About Corporate Taxes

C corporations are taxed as a separate entity apart from ownership. They are subject to double taxation, which means the corporation pays and files taxes according to the business income tax. An Individual business owner will also pay and file taxes on that income through their individual income tax return.

You’ll file IRS Form 1120 for your corporate tax return and IRS Form 1020 for your personal return. Note that tax forms for corporations often require more in-depth reporting than other business entities. You will not have to pay self-employment taxes as you will function as an employee and shareholder of the corporation.

Partnership (Multi-Member)

If you don’t file as a corporation, then the IRS will not recognize your business as a taxable entity apart from its members. Your LLC will be taxed as a partnership if you have multiple members.

Your partnership (multi-member) LLC tax filing deadline for 2023 was March 15, with a similar process to that of S corporations. You must submit Form 1065 as an informational return by the multi-member LLC tax filing deadline, along with the Schedule K-1. Then, each member will file and pay taxes on their personal share of the LLC income in April.

Sole Proprietorship (Single Member)

If you are self-employed and don’t file as a corporation, you can be taxed as a sole proprietorship. Owners of this type of business are called sole proprietors. The single-member LLC tax filing deadline for 2023 was April 18.

Instead of filing a separate return for your business, you will provide all relevant business information on your personal 1040 tax return using Schedule C. 

How to File a Tax Extension as a Small Business Owner

You can file for an extension if you need more time to complete your tax return. Anytime before your tax return deadline, you can file a tax extension request with the IRS online or by mail with Form 4868. This extends your deadline by six months with no penalties.

Your LLC tax extension deadline in 2023 will be October 17 for the original April deadlines and September 15 for extended March deadlines.

It’s important to note that extending your business return deadline does not extend the deadline for your tax payments. You should immediately make payments if you owe money on your taxes. Avoid late fees by paying now, and look forward to a possible refund when your return is finally completed. 

Tax Deadline FAQ

What happens if you miss the tax filing deadline, but the IRS owes you a refund?

Small businesses that miss a deadline but are owed a refund will not receive a penalty from the IRS.  

What happens if you miss the deadline and owe taxes?

Small businesses that miss a tax deadline and owe taxes will be subject to penalties and increased attention from the IRS. Interest from penalties will snowball until they are addressed, so it's important to file as soon as possible.

What happens if you miss an estimated tax payment deadline?

Small businesses that miss an estimated tax payment will typically receive a penalty from the IRS. Submitting the payment as soon as possible is optimal and will minimize the penalty owed. 

How do you pay estimated quarterly taxes?

Workers or business owners receiving tax forms other than a W-2 are expected to pay directly to the IRS four times a year. They must accurately calculate their taxes to avoid underpayment penalties and submit by the deadline to avoid additional penalties. Learn more about quarterly estimated taxes here. 

Work With a Tax Expert to Optimize Your LLC’s 2023 Taxes

Hitting every deadline and calculating accurate tax estimates is the last thing busy small business owners and entrepreneurs want to deal with. That's why ownership trusts 1-800Accountant, America's leading virtual accounting firm for small businesses, for their needs. 

Whether it's tax preparation, calculating and filing quarterly estimated tax payments, tax deductions, or any of our professional accounting services, we have the solution you need at a price that fits your budget. Schedule a quick consultation – usually 30 minutes or less – to learn how we can help.