by Brenden | Feb 13, 2023 | Business Law
As a business owner, staying on top of your tax obligations is crucial to avoid costly penalties and ensure compliance with federal and state tax laws. With different filing deadlines for various business structures and types, it’s important to know when your tax returns and estimated tax payments are due. Here are the key tax calendar dates to watch for in 2023.
1) Jan. 31, 2023: Provide Tax Forms to Employees and Contractors
As an employer, you must provide tax forms to any employees or independent contractors you hired the previous year. This includes W-2 forms for employees and 1099-NEC or 1099-MISC forms for independent contractors. The deadline for providing these forms to recipients is January 31, 2023.
2) March 15, 2023: Business Tax Returns for Partnerships, S Corporations, and LLCs
If your business is a partnership, S corporation, or LLC taxed as a partnership, you must file your tax return by March 15, 2023, if you follow the calendar year. However, if your business’s tax year doesn’t start on January 1, you’ll need to follow the IRS fiscal year due date. This is also the deadline to file Form 2553 to elect S corporation status for tax year 2023.
3) April 18, 2023: Tax Returns for C Corporations, Sole Proprietorships, and Individuals
This is the deadline for C corporations, sole proprietorships, single-member LLCs or LLCs taxed as corporations, and individuals to file their tax returns. Additionally, this is the last day to make 2022 contributions to traditional and Roth IRAs.
4) Oct. 16, 2023: Extended Individual Tax Return Deadline
If you received a filing extension on your 2022 income tax return, your extended individual return is due on this date.
5) 2023 Quarterly Estimated Tax Payment Deadlines
If you’re self-employed or receive any form of income that requires you to pay estimated taxes, here are the estimated tax due dates for 2022:
- April 15, 2023 – Deadline for 2022 Q1 estimated tax payments
- June 15, 2023 – Deadline for 2022 Q2 estimated tax payments
- Sept. 15, 2023 – Deadline for 2022 Q3 estimated tax payments
- Jan. 15, 2024 – Deadline for 2022 Q4 estimated tax payments
Note that if any of the above dates fall on a weekend or federal holiday, the payment deadline falls on the next business day instead.
How to File a Tax Extension as a Business Owner
If you need more time to file your taxes, you can apply for a tax-filing extension. This extension will give you an extra six months to file your return. However, a tax extension only extends your filing deadline, meaning you still need to pay any estimated tax payments on your business’s tax deadline. Here’s how to file a tax extension for your business:
- Sole proprietors can request a tax extension using IRS Form 4868.
- Partnerships, S corporations, and C corporations can request an extension using IRS Form 7004.
Make sure to pay your estimated taxes on time to avoid any late fees!
Staying on top of tax deadlines is essential for business owners. By keeping track of these key dates, you can avoid penalties and ensure your business stays in compliance with federal and state tax laws. If you have any questions or concerns about filing your taxes, don’t hesitate to consult with a tax professional or legal expert. Please call Brenden Kelley Law at 216-644-3359 so that we can assist you.
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by Brenden | Jan 11, 2023 | Business Law, Small Business
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.
Differences between C-Corporations & S-Corporations
Taxes
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.
Shareholders
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.
Management
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.
Complexity and 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.
Choosing Which Corporation
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 legal advice to determine which structure best suits your business. Please call Brenden Kelley Law at 216-644-3359 so that we can assist you starting your business.
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by Brenden | Dec 30, 2022 | Business Law, Small Business
Starting a small business in Ohio can be a challenging but rewarding endeavor. One important aspect of running a small business is understanding the various types of contracts and agreements that you may encounter. These legal documents can help protect your interests, establish clear terms and conditions, and ensure that you are able to operate smoothly and efficiently.
Here are five common types of contracts and agreements that small businesses may encounter:
- Employment contracts: If you are hiring employees, it is important to have a written employment contract that outlines the terms and conditions of their employment. This can include details such as salary, benefits, job duties, and the duration of the employment relationship. Employment contracts can help protect both the employer and the employee by clearly defining the expectations and responsibilities of each party.
- Lease agreements: If you are renting a space for your business, you will need to enter into a lease agreement with the landlord. This document will outline the terms of your tenancy, including the duration of the lease, the amount of rent, and any other terms and conditions that apply. It is important to carefully review a lease agreement before signing to ensure that it meets the needs of your business.
- Service contracts: If you are providing a service to your customers, you may enter into a service contract that outlines the terms of the service being provided. This can include details such as the scope of the service, the payment terms, and any guarantees or warranties that apply. Service contracts can help protect both the provider and the customer by setting clear expectations and establishing a clear resolution process if there are any disputes.
- Supply contracts: If you are purchasing goods or materials from a supplier, you may enter into a supply contract that outlines the terms of the transaction. This can include details such as the quantity of goods being purchased, the price, and any delivery or payment terms. Supply contracts can help ensure that you receive the goods you need in a timely manner and at a fair price.
- Non-disclosure agreements (NDAs): If you are sharing confidential information with someone, you may want to enter into a non-disclosure agreement (NDA) to protect that information. NDAs can be used to prevent the disclosure of trade secrets, business plans, or other sensitive information.
Contact a lawyer before signing a contract.
It is important to carefully review any contract or agreement before signing to ensure that it meets the needs of your business and protects your interests. If you have any questions or concerns about a contract or agreement, it is a good idea to seek the advice of an attorney. Please call Brenden Kelley Law at 216-644-3359 so that we can assist you.
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by Brenden | Dec 28, 2022 | Business Law, Dental Practice
Starting a new dental practice is an exciting time, but it’s important to ensure you’re in compliance with all relevant laws to prevent legal issues down the road. As a dentist, you must comply with all consumer laws, including those specific to medical professionals. Here are some of the most important issues to consider.
Consent: What You Need to Know
One of the most important issues for dentists is obtaining informed consent from patients before performing any dental procedure. Informed consent requires that you provide detailed information about the proposed treatment, viable alternatives, and any foreseeable risks of the procedure. You must answer any questions and get the patient to sign an informed consent form. Failure to obtain informed consent can result in legal action. If you’re unsure of the requirements where your practice is located, consult a dental lawyer.
Dental Patient Rights
As a dentist, you must uphold dental patient rights, as set forth by the Ohio licensing board. This includes standards related to care, reporting, records, and other dental patient rights issues. Any violations of these rights can lead to sanctions and lawsuits.
HIPAA: Protecting Patient Data
HIPAA sets the standard for protecting sensitive patient data, including dental records. This means that you must take the necessary steps to protect physical and digital records and information regarding patient diagnosis and treatment. Patient data must be kept confidential except when given written permission to disclose it to others, such as insurance providers.
Dental Malpractice and Clinical Negligence
Dental malpractice lawsuits can arise when a dentist fails to follow the generally accepted standard of care when treating a patient. This can result in nerve injuries, failure to diagnose oral cancer or periodontal disease, and wrongful tooth extraction. If you’re facing a dental malpractice lawsuit, consult a malpractice lawyer immediately. Clinical negligence lawsuits can be costly and complicated cases to resolve, even though payouts should ultimately be covered by malpractice insurance.
Associate Agreements: What to Look Out For
When considering associate agreements, carefully assess the merits of the offer and scrutinize for any limiting clauses, such as transfer of ownership of patient charts, non-solicitation provisions, and non-compete clauses. If you’re unsure of the potential legal implications of an offered associate agreement, discuss the contract with an attorney.
Practice Buy-Ins and Partnership Agreements: Know What You’re Getting Into
Partnership agreements will dictate your tax burden, legal liability, management responsibilities, and many other factors of your business. It’s important not to sign such a document unless you are sure that all the legal consequences are in your best interests—or at the very least that you are fully informed of their consequences.
Running a dental practice comes with a variety of legal issues that need to be carefully considered to avoid legal action. From obtaining informed consent to protecting patient data, upholding patient rights, and dealing with malpractice lawsuits, it’s important to work with a dental lawyer who can help you structure your practice to avoid problems and assist. Please call Brenden Kelley Law at 216-644-3359 so that we can assist you.
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by Brenden | Dec 1, 2022 | Business Law, Small Business
Opening your first business can be an exciting, yet complex and challenging endeavor.. There are many legal considerations to keep in mind, and it is important to have the right support and guidance to ensure that you are able to successfully launch and operate your business. One key element of this support is having a lawyer to help you navigate the legal landscape and protect your interests.
Here are some reasons why you may need a lawyer to start your small business in Ohio:
- Choosing the right business structure: One of the first decisions you will need to make when starting a small business is what type of business structure to use. Options include sole proprietorship, partnership, limited liability company (LLC), and corporation. Each type of business structure has its own advantages and disadvantages, and it is important to choose the one that is right for your business. A lawyer can help you understand the pros and cons of each option and advise you on the best choice for your business.
- Protecting your intellectual property: If you have developed a unique product or service, you will want to protect it from being copied or used without your permission. A lawyer can help you understand the various options for protecting your intellectual property, such as trademark, copyright, or patent protection. They can also assist with the process of registering your intellectual property and enforcing your rights.
- Drafting contracts and agreements: As a small business owner, you will likely enter into various contracts and agreements with employees, customers, suppliers, and other parties. It is important to have these documents carefully drafted to protect your interests and avoid disputes. A lawyer can help you understand the legal implications of these documents and ensure that they are written in a way that is clear and enforceable.
- Managing legal issues and disputes: Even if you take steps to protect your business, there is always the risk of legal disputes arising. A lawyer can help you navigate these issues and work to resolve them in a way that is favorable to your business. They can also represent you in court if necessary.
- Complying with regulations: There are many regulations that apply to small businesses in Ohio, including employment laws, tax laws, and health and safety regulations. A lawyer can help you understand your obligations under these laws and ensure that you are in compliance. This can help you avoid costly fines or legal action.
In short, having a lawyer to support you as you start your small business in Ohio can provide valuable guidance and protection as you navigate the legal landscape. Our firm has experience helping businesses get off the ground and make the right first steps. Please call Brenden Kelley Law at 216-644-3359 so that we can assist you and your business.
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