FAQs
Do you have a question pertaining to financial consulting, tax preparation, or bookkeeping? Launch CPA has collected some of the more popular questions that our clients have asked at our CPA firm in San Diego, CA.
If you have any questions please don’t hesitate to reach out to us. We look forward to helping you and your business succeed!
Aside from income tax, there are also annual state and local business/tax filings. For example, California requires a statement of information to be filed annually (if your business is filed as a corporation) and biennial (if your business is filed as a LLC/partnership). The City of San Diego requires an annual business/tax license filing/renewal while the cities of San Francisco and Los Angeles have gross receipt tax filings.
Even if you’re organized or incorporated in Delaware, you are not required to file a corporate or partnership tax return in that state if you aren’t physically located in Delaware. However, there is a separate “Franchise Tax Report” filing due annually on March 1st.
At Launch CPA, we advise our clients on incorporating when the business has established a reliable business model with consistent revenue and an increased position of risk.
Yes, you are required to file business tax returns despite having little or no activity.
Generally, tax deadlines are as follows:
Individuals
April 15th for calendar year filers. For fiscal year individuals, the 15th day of the fourth month following the close of the tax year.
Estates and Trusts
April 15th for calendar year filers. For fiscal year estates and trusts, the 15th day of the fourth month following the close of the tax year.
Partnerships and S-Corporations
March 15th for calendar year filers. For fiscal year partnership and S-Corporations, the 15th day of the third month following the close of the tax year.
C-Corporations
April 15th for calendar year filers. For fiscal year C-Corporations, the 15th day of the third month following the close of the tax year.
If the due date falls on a Saturday, Sunday, or legal holiday, the due date is on the next business day.
Most taxpayers need to file extensions because they’re waiting for additional tax documents, are unable due to an emergency or illness, or just don’t have the time to gather all the tax documents and prepare the tax return.
A six-month extension is granted when one is requested by the original due date on either Form 4868, Automatic Extension of Time to File U.S. Individual Tax Return or Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns.
It is worth mentioning that an extension to file your tax returns is not an extension to pay the taxes due. The extended due dates are as follows for calendar year filers:
Individuals
October 15th
Estates and Trusts
October 15th
Partnerships and S-Corporations
September 15th
C-Corporations
October 15th
Some states automatically follow the federal extension.
However, there are some states that require you to file a separate state extension.
In order to calculate the extension payment, the return will need to be completed with as much information available at the time. For any missing tax files, use estimates. It’s better than excluding the information altogether.
