Business Annual Tax
Business Annual Filing: Different Entities, Different Returns
U.S. business tax rules vary dramatically by entity type. Filing under the wrong method can result in penalties or double taxation. Here's a quick overview of each entity's requirements.
$800
CA annual fee
Mar 15
S-Corp deadline
Apr 15
C-Corp deadline
Filing requirements by entity
- SMLLC (single-member LLC): taxed as a disregarded entity by default — income on personal Schedule C; CA requires Form 568 + $800 annual franchise tax
- S-Corp: file Form 1120-S (due 3/15); profits/losses flow to shareholders via K-1; proper salary planning can reduce self-employment tax
- C-Corp: file Form 1120 (due 4/15); separate taxable entity at 21% federal rate
- Partnership: file Form 1065 (due 3/15); K-1 issued to each partner
What we handle
- All entity types: SMLLC / S-Corp / C-Corp / Partnership
- Federal + California (or other operating state) returns filed together
- Trucker SMLLC specifics: Form 2290, IFTA filings, Per Diem deductions
- S-Corp reasonable compensation guidance to reduce audit risk
- Schedule L balance sheet prep for S/C Corps
Filing deadlines
S-Corp / Partnership: March 15 · C-Corp: April 15 (6-month extension available for all)
SMLLCs have no separate federal business return, but California's $800 annual franchise fee is mandatory — missing the payment triggers interest and penalties. Not sure which entity fits you best? We also offer entity selection consulting (SMLLC vs S-Corp vs C-Corp).
Frequently Asked Questions
Should I stay as an SMLLC or switch to an S-Corp?+
SMLLC is simpler and cheaper to maintain — it's a good fit when you're starting out or earning less. Once net income consistently exceeds $40,000, the self-employment tax savings from S-Corp status typically outweigh the added compliance cost. We'll run the numbers before making a recommendation.
My business had a loss this year — do I still need to file?+
Yes. A loss year still requires timely filing (Schedule C on your personal return for an SMLLC, or Form 1120-S for an S-Corp). The loss generates a Net Operating Loss (NOL) that can carry forward to offset future income — it's a real tax asset.
Can the California $800 franchise tax be deducted as a business expense?+
Yes. The $800 annual fee is deductible as a business expense on your Schedule C or business return, so the effective out-of-pocket cost is lower than the sticker price.