It’s 2023 tax time! Opolis is right here to assist establish pertinent deadlines and enable you keep knowledgeable about any alterations in legislative and tax codes that might affect each you and your organization. As all the time, searching for recommendation from a professional tax skilled is really helpful for help in getting 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 revenue passes by means of to its homeowners and is taxed at your particular person price whereas sustaining private legal responsibility safety. It’s a mix of the very 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 firms, the deadline is the fifteenth day of the third month after the fiscal yr ends.

In case you are contemplating additional professionalizing your LLC, to be handled as an S Company you need to full IRS Kind 2553 inside 75 days of the tax yr’s begin (March 15) or in the course of 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 offer higher taxation technique alternatives whereas shielding Sole Proprietors from legal responsibility threat. Nevertheless, understanding the ideas is crucial for these considering this tax designation. 

An S Company will not be a definite enterprise entity; moderately, it represents a selected tax election sought by an LLC or C Company by means of the IRS. Electing S Corp standing includes the submission of Kind 2553 (directions under). The distinctive function of an S Company lies in how its company revenue, losses, deductions, and credit are distributed—they movement by means of to the shareholders, who’re the corporate’s homeowners. 

To qualify as an S Company for tax functions in 2024, current LLCs and C Companies have to submit their election inside a selected timeframe—two months and fifteen days, to be actual–after the graduation of their 2024 tax yr. As an example, if an organization’s tax yr started on January 1, 2024, the deadline for submitting IRS kind 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 helpful to evaluate the suitability of an S Company election for your enterprise. 

Kind 2553: Find out how to elect S Corp Taxation Standing

The next components are wanted with the submission of Kind 2553:

• Contact data.
• The specified graduation yr for the S Company election.
• Data 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 homeowners, 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 Revenue Tax Return) is due by April 15, 2024. Companies searching for 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 revenue taxes face a flat 21% price, with Kind 1120 requiring important particulars such because the company’s title, deal with, Federal Tax ID Quantity (EIN), asset listing, and revenue/loss data. 

Different Reporting Data & 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 Data Reporting Rule by including your possession data 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, can have till January 1, 2025, to conform
• These created on or after January 1, 2024, can have 90 days from the date of formation to offer this data to FinCEN.

Key Modifications for 2024 Business 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-Ok types for digital funds over $600; the brand new reporting threshold phased in at $5,000 for 2024.
• Meals and leisure deduction: Decreased to 50% for the tax yr 2023; leisure bills are now not deductible.
• Move-through enterprise homeowners: Eligible for a 20% deduction of certified enterprise revenue with elevated revenue caps for 2024.
• Bonus depreciation: Decreased to 80% for the tax yr 2023, decreasing by 20% every subsequent yr.
• Part 179 depreciation: Restrict of $1,160,000 for 2023; be aware separate limits for automobiles.

Opolis Makes Taxes Simple for Solopreneurs

Pondering of turning into an Opolis Member?

While you’re a Member of the Opolis Employment Commons, you instantly acquire entry to our suite of legitimately premium advantages like Medical, Dental, Imaginative and prescient, Life & Incapacity, and lots of extra. We additionally simplify your taxes as a solopreneur.

Computerized Tax Deductions: 

As a member, Opolis mechanically calculates your payroll tax withholdings (Employer and Worker parts of FICA, FUTA, SUTA, State & Native taxes, and so on.) and remits these quantities to the correct jurisdictions in your behalf. No payroll tax licenses are wanted below your EIN with Federal, State, or Native jurisdictions.

We Make Tax Submitting Easy: 

As your Employer of Document, we’ll ship you a W2 as an Worker of Employment Commons LCA on the finish of every calendar yr. Additionally, you will obtain the accounting data essential to e book your entity’s payroll bills as enterprise bills.

For extra data on how Opolis may also 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 completely satisfied to help. Completely happy Filings!