Tax Classifications
- Disregarded Entity: Default for single-member LLCs. Report on Schedule C.
- Partnership: Default for multi-member LLCs. File Form 1065.
- S-Corp: Election required. File Form 1120-S.
- C-Corp: Election required. File Form 1120.
Select classification.
2026 Deadlines
- March 16, 2026: Partnerships and S-Corps. Form 1065 and Form 1120-S due.
- April 15, 2026: Single-member LLCs and C-Corps. Form 1040 (Schedule C) and Form 1120 due.
- September 15, 2026: Extended deadline for partnerships and S-Corps.
File on time.
S-Corp Election
- Form 2553: Submit to elect S-Corp status.
- Deadline: March 16, 2026.
- Effective Date: Applies to the 2026 tax year if filed by the deadline.
Submit Form 2553.
QBI Deduction
- Benefit: 20% deduction on qualified business income.
- Eligibility: Pass-through entities (Sole Prop, Partnership, S-Corp).
- Thresholds: Monitor income limits for 2026.
Claim QBI.
Entity Election
- Form 8832: Use for C-Corp classification.
- Timing: File within 75 days of the effective date.
- Impact: Removes QBI eligibility. Taxes at corporate rates.
File Form 8832.
Operational Compliance
- Reasonable Compensation: Pay W-2 wages to S-Corp owner-employees. Avoid IRS audits.
- Self-Employment Tax: Pay on all profits for Partnerships and Sole Proprietors.
- K-1 Issuance: Provide Schedule K-1 to partners and S-Corp shareholders by March 16, 2026.
Distribute K-1s.
Tax Payments
- Estimated Taxes: Pay quarterly.
- Vouchers: Use Form 1040-ES.
- Deadlines: April, June, September, and January.
Pay quarterly.
State Requirements
- Annual Reports: File with the Secretary of State.
- Franchise Tax: Pay applicable state business taxes.
- Registered Agent: Maintain an active registered agent service.
Maintain status.
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