Corporate tax returns are due March 15th following the end of the December calendar tax year, which means you as the officer of the corporation must gather all necessary information and let me know of important events which could affect your tax return much sooner than would an individual taxpayer using a sole-proprietorship type business entity (individual form 1040’s are due April 15th). A filing extension beyond the filing deadline is available if the necessary tax data is not complete. Individual tax returns are prepared after meeting with the taxpayer to discuss all related tax matters that could affect the bottom line. Many small business owners use sole proprietorships, as these are the simplest to understand and maintain. These are reported on schedule C, which is attached to your form 1040. Using checklists, research tools and a proven system used over the past 30 years of tax return preparation, your tax return is then prepared and completed within a reasonable time frame, usually within two weeks. It is important to gather as much information together and bring it with you to the tax preparation meeting.
The corporate form of tax entity is more complex than that of a sole proprietorship, but is worth the additional time and cost involved if properly formed and used to your tax advantage. The rules regarding “C” corporations and “S” corporations, and their distinct advantages and disadvantages, are too complex to address here. However, I believe it is vitally important to discuss the potentially favorable tax ramifications and pitfalls of each of these tax entities with you before selecting one for your particular business. We also have attorneys in my office suites that can discuss the legal aspects of corporations with you. I would be happy to discuss these with you in greater detail. Simply contact my office at 561-989-9900.