Corporate Tax Filing Deadline for Roofing Companies
What corporate tax filing deadline applies to your roofing business? That depends on whether your business is a C corporation or an S corporation. As a general rule of thumb, filing deadlines are in the spring and extensions are in the fall. Read up on the requirements for filing taxes as a corporation to help your roofing business stay prepared year-round.
C Corporation vs. S Corporation
A corporation is defined as a form of business operation that declares a company as a separate, legal entity guided by a board of directors.
From a tax standpoint, there are two legal structures: a C corporation, in which the owners are taxed separately from the business entity, and an S corporation, which gives it the benefit of incorporation while being taxed as a partnership.
This means a C corporation pays income tax at the corporate rate and an S corporation pays at the personal tax rate of the owner.
Corporate Tax Filing Deadlines
March 16 is the usual deadline for filing S corporation income tax returns for businesses operating on a calendar year. It is also the deadline to file for an extension. For businesses operating on a fiscal year, the filing deadline is the 15th day of the third month following the end of the fiscal year.
S corporations must also issue Schedule K-1s to each partner or shareholder by this date for them to report on their individual returns. If you plan on extending your tax deadline, all partners or shareholders need to do the same. September 15 is the final deadline to file S corporation returns if an extension was requested.
April 15 is the deadline for filing C corporation income tax returns operating on a calendar year (except for 2020, when the filing deadline was extended to July 15). It is also the deadline to file for an extension. If your business is operating on a fiscal year, the filing deadline is the fifteenth day of the third month following the end of the fiscal year.
The final deadline to file C corporation returns is October 15 if an extension was requested. If you ask for an extension, you will file taxes by October 15, but you still need to pay taxes by April 15.
Other Dates to Keep in Mind
If you plan to make any end-of-the-year tax moves to help reduce your tax bill, November 1 is the time to start planning:
- Deferring end-of-the-year billing until January means that income won't be taxable until the following year.
- Deducting bad business debts in part or in full is sometimes an option. Learn more about claiming bad debt as a tax deduction.
- Making office improvements and repairs is sometimes deductible. You can generally deduct the cost of routine repair within a single year or depreciate improvements over a period of time.
The deadline to make any tax moves for the year is December 31. The estimated quarterly tax payment deadlines are:
- 1st Quarter: April 15.
- 2nd Quarter: June 15.
- 3rd Quarter: September 15.
- 4th Quarter: December 15 (corporations) and January 15th (individuals).
Changing Tax Status
The most common change in a company's corporate tax filing status is from a C to an S corporation, which allows for pass-through taxation. Business owners often make this change to avoid the double taxation of corporate income. Sometimes, businesses change from an S to a C corporation because they no longer meet the requirements outlined by the IRS to retain this status.
The only difference between the two corporate structures is the tax-filing status, so the only requirement for changing from a C to an S corporation is completing and filing the appropriate paperwork with the IRS to change the tax election. Plus, you need to make sure that you file the required annual federal tax forms for an S corporation going forward.
Being an S corporation can be beneficial when it comes time to transfer ownership or discontinue the business because it can be freely transferred without triggering adverse tax consequences.
If you change from an LLC to a corporation, you will have to change the business name to remove the "LLC" and add a corporate designation, such as "Inc.," and notify the appropriate federal, state and local tax authorities. Check with your accountant or tax advisor for any questions about managing taxes on your roofing business or meeting your corporate tax filing deadline.
