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 | Feb 1, 2023 | Business Law
Starting a business in Ohio can be a rewarding and exciting venture, but it can also be overwhelming and challenging. There are many steps to take and decisions to make, and it’s important to be well-informed and prepared in order to set your business up for success.
Here are 7 steps to consider as you begin starting a business in Ohio:
- Choose a business structure: One of the first decisions you’ll need to make is what type of business structure you want to have. The most common options in Ohio are sole proprietorship, partnership, limited liability company (LLC), and corporation. Each has its own advantages and disadvantages, so it’s important to consider your needs and goals before making a decision.
- Obtain any necessary licenses and permits: Depending on the type of business you are starting, you may need to obtain various licenses and permits in order to operate legally in Ohio. This can include things like a sales tax permit, food service permit, or liquor license. It’s important to research what licenses and permits are required for your specific business and to obtain them before starting operations.
- Create a business plan: A business plan is a detailed document that outlines your goals, strategies, and financial projections for your business. It helps you identify your target market, define your competitive advantage, and set measurable objectives. A business plan is an essential tool for any small business, as it helps you stay organized and focused on your long-term goals.
- Secure financing: Most small businesses require some form of financing to get off the ground. This can include loans, grants, or investments from friends and family. It’s important to research your financing options and create a financial plan that outlines how you will use the funds to grow your business.
- Choose a location: The location of your business is an important consideration, as it can impact things like foot traffic, rent, and access to customers. It’s important to research different locations and consider factors like parking, foot traffic, and proximity to your target market.
- Set up your business: Once you have chosen a business structure and secured financing, it’s time to set up your business. This can include things like choosing a business name, creating a logo, setting up a website, and purchasing any necessary equipment or supplies.
- Market your business: Marketing is an important aspect of running a small business, as it helps you attract and retain customers. There are many ways to market a small business, including social media, email marketing, and local advertising. It’s important to find marketing strategies that work for your specific business and to consistently promote your products or services.
Careful planning and preparation.
Starting a small business in Ohio requires careful planning and preparation, but with hard work and dedication, it can be a rewarding and fulfilling experience. It’s important to stay organized and focused on your goals, and to seek out resources and support as needed. With the right approach, you can successfully launch and grow your small business in Ohio. Please call Brenden Kelley Law at 216-644-3359 so that we can assist you starting your small business.
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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 | Nov 20, 2022 | Business Law, Dental Practice
When starting a dental practice or restructuring an existing one, choosing the right entity and tax structure can be a crucial decision. However, there are many nuances and considerations that make it hard to pinpoint an all-encompassing answer. In this blog post, we will highlight some practical options for one or two-person dental practice entities.
Avoid Sole Proprietorship and General or Limited Partnerships
Sole proprietorships should be avoided since they do not offer personal liability protection for the dentist. All tax consequences and liabilities would be borne by the dentist, which is an unfavorable scenario. General and limited partnerships also lack limited liability protection, which makes them less desirable than other options.
Consider Limited Liability Companies and Corporations
For personal liability protection, it is best to form either a limited liability company (LLC) or a corporation. Both entities shield the owner(s) from the acts or omissions of the entity employees and other business operation liabilities. LLCs and corporations are both good choices when it comes to personal liability protection. However, they have different corporate formalities that must be followed. Corporations have more formalities, such as requirements to maintain minutes and have certain meetings, while LLCs do not have such obligations.
Understand the Tax Implications of Each Entity
When it comes to taxation, the entities have different requirements and implications. A partnership is a pass-through entity, which means all income, losses, and credits flow through to the partners’ individual income tax returns. However, partnerships must file a tax return even though the entity itself is not subject to tax. A C corporation is subject to double taxation, which means the corporation is taxed on all the business earnings, and those earnings are taxed again when paid out as dividends. An S corporation is subject to only one level of tax and can reduce the employment tax liability of the owners by managing their reasonable compensation in relation to the S corporation’s net-profit distributions.
For LLCs and corporations, the entities can be taxed as either a C corporation or an S corporation. However, if a dentist chooses a corporation as their entity, they must understand the corporation’s limitations in terms of tax flexibility from initial formation through to the sale of the dental practice.
Choose What Works Best for Your Dental Practice
There is no right or wrong answer when it comes to choosing the best entity and tax structure for a dental practice. Each option has its advantages and disadvantages, and the choice will depend on various factors, such as the number of dentists, business objectives, personal liability protection, tax implications, and more. Consulting with tax and legal professionals to help evaluate the options is a crucial step towards making an informed decision. Please call Brenden Kelley Law at 216-644-3359 so that we can assist you starting or restructuring your dental practice.
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