Empower Your Business: Master the 2024 Tax Deadlines

Empower Your Business: Master the 2024 Tax Deadlines

In the complex world of business, managing your tax obligations is a cornerstone of success and legal compliance. With the onset of 2024, it’s imperative for business owners to familiarize themselves with the critical tax deadlines affecting various business structures. It helps you dodge hefty fines and stick to tax laws. Knowing when to file tax returns and make payments is crucial. Below, we outline the key tax calendar dates and deadlines for businesses in 2024, drawing on the structure provided for 2023.

1) January 31, 2024: Deadline for Distributing Tax Forms

Businesses must issue W-2 forms to employees and 1099-NEC or 1099-MISC forms to independent contractors for services provided in the previous year. The cutoff date for furnishing these documents is January 31,. This deadline is important to give everyone enough time for their tax preparations.

2) March 15, 2024: Tax Returns for Partnerships, S Corporations, and LLCs

For partnerships, S corporations, and LLCs elected to be treated as partnerships for tax purposes, the deadline to file tax returns is March 15. This date applies if your business follows the calendar year. For those operating on a fiscal year, the deadline is based on the IRS fiscal year schedule. Additionally, if you wish to elect S corporation status for 2024, you must submit Form 2553 by this date.

3) April 15, 2024: Deadlines for C Corporations, Sole Proprietorships, and Individuals

C corporations, sole proprietors, single-member LLCs, or LLCs taxed as corporations, alongside individuals, must file their tax returns by April 15, 2024. This date also marks the final opportunity to contribute to traditional and Roth IRAs for the 2023 tax year.

4) October 15, 2024: Extended Tax Return Deadline

Should you have obtained an extension for your 2023 income tax return, the extended deadline to submit your tax documents is October 15, 2024. This extension provides additional time to gather necessary information and ensure accuracy in your tax filings.

5) Quarterly Estimated Tax Payment Deadlines for 2024

For those required to make estimated tax payments remember the following deadlines for the 2024 tax year:

  • April 15, 2024: Q1 estimated tax payment
  • June 17, 2024: Q2 estimated tax payment (adjusted due to the 15th falling on a weekend)
  • September 16, 2024: Q3 estimated tax payment (adjusted due to the 15th falling on a weekend)
  • January 15, 2025: Q4 estimated tax payment for 2024

Should any of these dates land on a weekend or federal holiday, the deadline will be the next business day.

How to File a Tax Extension as a Business Owner

If more time is needed to prepare your tax return, you can apply for an extension, granting an additional six months to file. It’s crucial to understand that this extends only the filing deadline, not the payment due date for estimated taxes. Use IRS Form 4868 for sole proprietors and Form 7004 for partnerships, S corporations, and C corporations.

Timely payment of estimated taxes is crucial to avoid penalties. Staying informed of these critical dates helps ensure your business meets its tax obligations and maintains compliance with tax laws. Should you need guidance or assistance in managing your tax responsibilities, consulting with a professional is always advisable. For expert advice and support, consider reaching out to Brenden Kelley Law at 216-644-3359, where we’re ready to assist you with your tax planning and compliance needs.


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Explore our other Blog Posts for Business Owners 5 Important contracts to know when starting a Small Business and Choosing the Best Corporation in Ohio: S-Corp or C-Corp?

Additional Resource: Visit the IRS’ Small Business Self-Employed Tax Center for access to important information, dates, forms, and guidance.

Arbitration for Business Disputes in Ohio: Pros and Cons

Arbitration for Business Disputes in Ohio: Pros and Cons

Arbitration is a form of alternative dispute resolution (ADR) that is commonly used in Ohio and other states to resolve business disputes. It is a process in which a neutral third party, called an arbitrator, listens to the evidence presented by both sides of a dispute and makes a decision that is binding on the parties.

Advantages

Arbitration has several advantages over traditional litigation in the court system. One of the main benefits is that it is typically faster and less expensive than going to court. Because arbitration proceedings are typically less formal than court proceedings, they can be completed more quickly and with less legal fees. Additionally, arbitration proceedings are often more confidential than court proceedings, which can be especially beneficial for businesses that want to keep their disputes private.

Another advantage of arbitration is that it allows the parties to choose an arbitrator who has expertise in the area of the dispute. For example, if a dispute involves a contract for the sale of goods, the parties can choose an arbitrator who has experience with commercial transactions. This can be beneficial because the arbitrator will be able to understand the complexities of the dispute and make a more informed decision.

Disadvantages

However, arbitration is not the right choice for every business dispute. One of the main disadvantages of arbitration is that the decision of the arbitrator is final and binding, and there is no appeal process. This means that if one of the parties is unhappy with the decision, they have no legal recourse. Additionally, arbitration proceedings can be more expensive than other forms of ADR, such as mediation.

Another potential disadvantage of arbitration is that it can be less fair than the court system. This is because the parties to the dispute have less control over the process. For example, the parties do not have the same rights to discovery (i.e. the process of obtaining evidence from the other side) as they would in a court case. Additionally, the arbitrator may be biased towards one of the parties. This is why it is crucial that the parties choose an arbitrator who is impartial and unbiased.

Conclusion

In conclusion, arbitration can be an effective way to resolve business disputes in Ohio, but it is not the right choice for every dispute. Businesses should consider the advantages and disadvantages of arbitration and choose the ADR method that is best for their specific dispute. If you are unsure whether arbitration is the right choice for your business dispute, it is a good idea to consult with an attorney who has experience in the field of alternative dispute resolution.


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6 Personal Considerations to Keep in Mind Before Selling Your Business

6 Personal Considerations to Keep in Mind Before Selling Your Business

Selling a business can be a difficult decision, and it’s important to consider a number of personal factors before making the decision to move forward. Here are six personal considerations to keep in mind before selling your business:

6 Personal Considerations:

1. Financial considerations: Selling a business can be a great way to cash in on years of hard work, but it’s important to consider the financial implications of the sale. Will the sale provide enough funds to support your lifestyle for the foreseeable future? Do you have enough money saved to live on after the sale, or will you need to find another source of income? These are important questions to answer before making the decision to sell.

2. Emotional considerations: Selling a business can be emotionally difficult, especially if you have built the business from scratch or have been running it for many years. It’s important to consider the emotional toll that the sale will take on you and your family. Are you prepared for the change in lifestyle that may come with the sale? Are you ready to let go of the business you have built and move on to something new?

3. Timing considerations: The timing of a sale can be just as important as the sale itself. Are there external factors that may affect the sale of your business, such as changes in the economy or changes in the industry? Are there internal factors that may affect the sale, such as the readiness of key employees or the need for major repairs or renovations? Timing can play a significant role in the success of a sale, so it’s important to consider the timing carefully.

4. Tax considerations: Selling a business can have a significant impact on your taxes, so it’s important to consider the tax implications of the sale. Will you be able to take advantage of any tax breaks or deductions? Will you need to pay capital gains tax on the sale? Are there any tax implications for your employees or other stakeholders? It’s important to consult with a tax professional to understand the tax implications of the sale before making a decision.

5. Legacy considerations: Selling a business can also have an impact on your legacy. Will the business continue to operate and grow under new ownership? Will the new owners maintain the values and culture that you have built? Will the sale have a positive impact on the community and the industry? Legacy considerations can be just as important as financial considerations, and should be taken into account when making the decision to sell.

6. Future considerations: Finally, it’s important to consider your future plans before selling a business. What are your future goals and aspirations? What kind of life do you want to lead after the sale? Will the sale allow you to pursue these goals and aspirations, or will it hold you back? It’s important to think about the future and how the sale will impact your plans before making the decision to sell.

Final Thoughts

In conclusion, selling a business is a major decision that requires careful consideration of a number of personal factors. From financial considerations to emotional considerations, timing considerations to tax considerations, legacy considerations to future considerations, it’s important to weigh all the pros and cons before making a decision. It’s also important to seek professional advice from legal, financial, and tax experts before making a decision.

With the right approach and careful consideration, you can make the decision that’s right for you and your business.


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Understanding the Corporate Transparency Act: What Every Business Needs to Know

Understanding the Corporate Transparency Act: What Every Business Needs to Know

The Corporate Transparency Act (CTA) is a new law that was recently passed by Congress and is set to take effect in the near future. This law aims to increase transparency and accountability in the business world by requiring certain companies to disclose their beneficial ownership information to the government. In this blog post, we will discuss what every business needs to know about the CTA and how it may affect them.

Requirements

The CTA requires certain companies to disclose information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Beneficial ownership refers to the individuals who ultimately own or control a company, as opposed to the individuals who may appear on paper as the owners or shareholders. This information will be kept confidential and will only be accessible to government agencies for specific law enforcement and national security purposes.

The CTA applies to companies that are formed under the laws of a U.S. state or Indian Tribe, and that are engaged in business, or that are formed for the purpose of engaging in business. This includes corporations, limited liability companies (LLCs), and other similar entities. It also applies to companies that are formed by filing a public organic record with the Secretary of State, such as a certificate of formation or articles of incorporation.

Important Things to Know

One of the most important things that businesses need to know about the CTA is that they may be required to disclose their beneficial ownership information to the government. This means that they will need to gather and provide information about the individuals who ultimately own or control the company. This may include information such as their name, address, date of birth, and government-issued identification number.

Another important thing for businesses to know is that the CTA imposes penalties for noncompliance. Companies that fail to disclose their beneficial ownership information as required by the CTA may be subject to fines and penalties. Additionally, individuals who knowingly provide false or fraudulent beneficial ownership information may be subject to fines, imprisonment, or both.

It is also important to note that the CTA does not require all companies to disclose their beneficial ownership information. However, it is essential to be aware of the law and its requirements in case your company falls under the scope of this law.

Conclusion

In conclusion, the Corporate Transparency Act is a new law that aims to increase transparency and accountability in the business world by requiring certain companies to disclose their beneficial ownership information to the government. Businesses need to be aware of the law and its requirements, as they may be required to disclose their beneficial ownership information to the government. Noncompliance may result in penalties and fines. Businesses should consult with their legal counsel to determine their obligations under the CTA and to ensure compliance.


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S-corp vs. C-corp

S-corp vs. C-corp

S-corporations and C-corporations are two different types of business structures that are recognized under U.S. federal tax law. Both types of corporations provide limited liability protection to their shareholders, which means that shareholders are not personally liable for the company’s debts and liabilities. However, there are some key differences between the two types of corporations that can have a significant impact on how the business is taxed and operated.

What’s the Difference?

One of the main differences between S-corporations and C-corporations is the way they are taxed. C-corporations are considered to be separate entities from their shareholders, and they are subject to corporate income tax on their profits. In contrast, S-corporations are considered to be “pass-through” entities, which means that the company’s profits are passed through to its shareholders and taxed at the individual level.

This pass-through taxation can be a significant advantage for S-corporations, as it can help to avoid the “double taxation” that can occur with C-corporations. For example, if a C-corporation earns $100,000 in profits, it would be taxed at the corporate level, leaving $70,000 after corporate taxes. If the company then distributes the remaining $70,000 to its shareholders as dividends, the shareholders would then have to pay personal income tax on those dividends. With an S-corporation, the $100,000 in profits would be passed through to the shareholders and taxed at the individual level, avoiding the additional corporate tax.

Another difference between S-corporations and C-corporations is the number of shareholders they can have. S-corporations are limited to 100 shareholders, while C-corporations can have an unlimited number of shareholders. This can be a significant consideration for companies that are planning to go public or that have a large number of investors.
There are also some restrictions on the types of shareholders that S-corporations can have. For example, S-corporations cannot have non-resident alien shareholders, and they cannot have more than one class of stock. This can limit the flexibility of the business in terms of raising capital and issuing stock options.

Advantages

In terms of flexibility and management, C-corporations can have a board of directors, while S-corporations cannot. However, S-corporations can have more flexibility in terms of profit distribution. Unlike C-corporations, S-corporations are not required to distribute profits equally among shareholders, and they can choose to retain profits in the business if they wish.

Another advantage of S-corporations is that they are considered to be “Small Business Corporation” and they can enjoy certain tax benefits which are not available to C-Corporations.

Disadvantages

One of the main disadvantages of S-corporations is that they can be more complex to set up and maintain than other types of business structures, such as sole proprietorships or partnerships. They are also subject to more regulatory requirements, such as holding annual meetings and keeping detailed records of the company’s financial and operational activities.

C-corporations also have their own advantages and disadvantages. They are considered more stable and with more prestige. They can also raise capital more easily and attract more investors, but it comes with the trade-off of double taxation.

Final Thoughts…

In conclusion, whether to choose an S-corporation or C-corporation depends on the company’s specific needs and goals. S-corporations can be a good option for small businesses that want to avoid double taxation and have a relatively small number of shareholders. However, they may not be the best option for companies that are planning to go public or have a large number of shareholders, as they have restrictions on the number of shareholders and types of shareholders they can have. C-corporations, on the other hand, may be a better option for larger companies that plan to raise capital and have more flexibility in terms of profit distribution and management structure. It’s important to consider all aspects of each type of corporation, weigh the pros and cons, and seek professional advice to determine which structure best suits your business.


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