Federal Tax Filing

Navigating the intricacies of federal tax regulations is a critical aspect of operating any business in the United States. The Internal Revenue Service (IRS) mandates specific filing requirements and deadlines that vary based on your business structure. Failure to comply can result in significant penalties, interest, and legal complications.

At Brendat, we provide expert guidance and services to ensure your U.S. LLC meets all its federal tax filing obligations accurately and on time, maintaining your business's good standing and allowing you to focus on growth.

Understanding Your LLC's Federal Tax Obligations:

A key aspect of federal tax filing for an LLC is its tax classification. By default, the IRS treats LLCs in one of two ways, but you can elect to be taxed differently:

1. Single-Member LLC (Default: Disregarded Entity/Sole Proprietorship):

   • Filing: The LLC's income and expenses are reported directly on the owner's personal federal income tax return, Form 1040, using Schedule C (Profit or Loss From Business).
   • Taxes: The owner pays personal income tax and self-employment taxes (Social Security and Medicare) on the net profit of the LLC.
   • Estimated Taxes: Owners often need to make quarterly estimated tax payments (Form 1040-ES) throughout the year to cover their income and self-employment tax liabilities.

2. Multi-Member LLC (Default: Partnership):

   • Filing: The LLC itself files an informational return, Form 1065 (U.S. Return of Partnership Income), which reports the LLC's income, deductions, gains, and losses. The LLC does not pay income tax directly.
   • Pass-Through Taxation: The income and losses "pass through" to the individual members, who report their share on their personal tax returns (Form 1040) via Schedule K-1 (Partner's Share of Income, Deductions, Credits, etc.), which the LLC issues to each member.
   • Estimated Taxes: Each member is responsible for paying estimated taxes on their share of the LLC's income.

3. LLC Electing to be Taxed as an S Corporation (S-Corp):

   • Filing: The LLC files Form 1120-S (U.S. Income Tax Return for an S Corporation).
   • Tax Advantages: This election (made by filing Form 2553) can help owners save on self-employment taxes by allowing them to take a "reasonable salary" (subject to payroll taxes) and distribute the remaining profits as distributions (not subject to self-employment tax).
   • Pass-Through Taxation: Similar to partnerships, income and losses pass through to the owners' personal tax returns via Schedule K-1.

4. LLC Electing to be Taxed as a C Corporation (C-Corp):

   • Filing: The LLC files Form 1120 (U.S. Corporation Income Tax Return) and pays taxes at the corporate level.
   • Double Taxation: Profits are taxed at the corporate level, and then again when distributed to owners as dividends (unless reinvested in the business), leading to "double taxation."
   • Advantages: Can be beneficial for businesses planning to raise capital or reinvest heavily, as corporate tax rates can sometimes be lower than individual rates.

Key Federal Tax Filing Deadlines (for Calendar Year Businesses in 2025):

• March 17, 2025: Deadline for Partnerships (Form 1065) and S Corporations (Form 1120-S) to file their 2024 tax returns or request an extension.
• April 15, 2025 (Tax Day):
  • Deadline for Sole Proprietors and Single-Member LLCs (filing Schedule C with Form 1040) to file their 2024 tax returns or request an extension.
  • Deadline for C Corporations (Form 1120) to file their 2024 tax returns or request an extension.
  • First quarterly estimated tax payment for individuals and corporations.
• June 16, 2025: Second quarterly estimated tax payment.
• September 15, 2025: Third quarterly estimated tax payment. Extended deadline for Partnerships and S Corps.
• October 15, 2025: Extended deadline for Sole Proprietors, Single-Member LLCs, and C Corporations.
• January 15, 2026: Fourth quarterly estimated tax payment for 2025.
• January 31, 2026: Deadline for employers to file W-2s and for businesses to file 1099-NEC for non-employee compensation.

(Note: If a deadline falls on a weekend or holiday, it shifts to the next business day. These dates are for calendar-year businesses; fiscal-year businesses have different deadlines based on their fiscal year end.)

How Brendat Ensures Your Federal Tax Compliance:

Navigating these deadlines and the correct forms can be complex, especially for new businesses or foreign owners. Brendat provides comprehensive services to simplify your federal tax filing:

1. Tax Classification Guidance: We help you understand your LLC's default tax classification and, if beneficial, assist with electing a different tax status (e.g., S-Corp election via Form 2553).
2. EIN & ITIN Assistance: We ensure you have the necessary Employer Identification Number (EIN) for your business and, if applicable, your Individual Taxpayer Identification Number (ITIN) for personal tax obligations, both of which are foundational for tax filing.
3. Accurate Form Preparation: Based on your LLC's tax classification and financial records, we prepare all required federal tax forms (e.g., Schedule C, Form 1065, Form 1120-S, Form 1120, Schedule K-1s) with meticulous attention to detail.
4. Deduction Optimization: We help identify eligible business deductions and credits to minimize your tax liability, ensuring you take advantage of all opportunities to save.
5. Estimated Tax Planning: For LLCs subject to estimated tax payments, we provide guidance on calculating and making these quarterly payments to avoid underpayment penalties.
6. Timely Filing & Extensions: We ensure your tax returns are filed by the appropriate deadlines. If needed, we can prepare and file extensions on your behalf.
7. Record-Keeping Advice: We offer advice on maintaining proper financial records throughout the year, which is crucial for accurate tax preparation and in case of an IRS audit.
8. Compliance Updates: We keep you informed of any relevant changes in IRS regulations or tax laws that could impact your business.
9. Expert Support: Our team of tax professionals is available to answer your questions and provide personalized advice, giving you peace of mind that your business's federal tax compliance is handled expertly.

Don't let federal tax complexities hinder your business's progress. Partner with Brendat to ensure timely and accurate federal tax filings, keeping your U.S. LLC fully compliant with IRS regulations and free to achieve its full potential.