If you’re a business owner and operate as a Limited Liability Company (LLC), you know that tax season is stressful. Filing an extension for LLC taxes can be daunting, especially if you need to file an extension. Fortunately, in this blog post, we will discuss how to file an extension for LLC taxes and what you should know when filing.
Table of Contents
Step 1: Determine Your LLC Filing Deadline
Before you can file an extension, you need to determine your filing deadline. As an LLC, your filing deadline will depend on how you have elected to be taxed. If you are taxed as a partnership or a sole proprietorship, your filing deadline will be the same as your personal tax return, which is typically April 18th.
S-Corporations and Partnerships taxes are due March 15th.
Step 2: File Form 7004
Once you have determined your filing deadline, the next step is to file Form 7004, which is the application for an automatic extension of time to file certain business income tax returns. This form is used to request an extension of time to file your LLC’s tax return, giving you an additional six months to file.
Generally, Form 7004 must be filed on or before the due date of the applicable tax return.
You can file Form 7004 electronically or by mail. If you choose to file electronically, you can use the IRS’s e-file system, which is available to all taxpayers. If you prefer to file by mail, you can download the form from the IRS website, complete it, and mail it to the address listed on the form.
When completing Form 7004, you will need to provide some basic information about your LLC, including its name, address, and tax identification number. You will also need to indicate the type of tax return you will be filing, which will typically be a Form 1065 (Partnership Return), Form 1120 (Corporate Return), or Form 1120S (S Corporation Return).
How will I know my Form 7004 tax extension has been approved?
The IRS will no longer send a notification that your extension has been approved. We will notify you only if your request for an extension is disallowed. Properly filing Form 7004 will automatically give you the maximum extension allowed from the due date of your return to file the return.
Source – https://www.irs.gov/instructions/i7004
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Step 3: Estimate Your Tax Liability
When you file an extension for LLC taxes, it is important to remember that you are only extending the time to file your tax return, not the time to pay any taxes owed. Therefore, you will need to estimate your tax liability and make a payment of any taxes owed by your original filing deadline.
If you fail to make a payment or underestimate your tax liability, you may be subject to penalties and interest charges. Therefore, it is essential to be as accurate as possible when estimating your tax liability.
Step 4: Keep Track of Deadlines
After filing the extension for LLC taxes with Form 7004 and making any necessary tax payments, it is important to keep track of your new filing deadline. Your deadline will typically be six months from your original filing deadline, so if your original deadline were April 15th, your new deadline would be October 15th.
It is important to keep track of your new deadline and make sure you file your tax return on time. Failing to file your tax return by the new deadline can result in penalties and interest charges.
Consult with a Professional
If you’re consumed with worry and doubts about the extension for LLC taxes and haven’t hired a CPA yet, you need to get on that right away.
1-800-ACCOUNTANT is a trusted, reliable source. Their CPAs on staff have an average of 17 years of experience. They’ve served over 100,000 small businesses in all 50 states. Do not wait till it’s too late to consult with a professional.
