Virtual Accounting in the United States

How many times does a company have to declare taxes in a year?

The financial control of your company is indispensable as well as paying taxes on profit is an obligation of your business, independently of whether you operate as a sole proprietorship, corporation, partnership or a limited liability company ( LLC).

The type of operating structure determines how and how often you should report and pay income taxes on your company. Failure to file or issue due tax on profits in a timely manner leads to penalties and fines. Failure to pay taxes for your business can lead to imprisonment.

At a minimum, a corporation must file income tax annually using the 1120 Form, which is the Company’s US Corporate Income Tax Return. This form is similar to that for a single, individual taxpayer, referred to as a legal entity.

A C corporation must complete Form 1120 independently of whether there is income to declare or not. According to the Internal Revenue Service (IRS), a company must file its tax return on the 15th day of the third month after the end of the tax year.

An S corporation is a specially designated corporation that does not pay income tax but passes income and business losses to shareholders, who must report together with their personal income taxes. An S corporation must file Form 1120S by the 15th day of the third month after the end of the fiscal year.

Don’t hesitate to contact us, schedule a meeting with Dominium Consulting and clarify your doubts.

Taxation of Sole Proprietorships, Partnerships and LLCs;

A company with only one partner and considered as “disregard entity” or, in more simple terms, a non-incorporated in English is called a “sole proprietorship”. The sole owner pays taxes on the profits earned from the business using Form 1040. In that case, you report your taxes just like other individual taxpayers, which usually occurs in the middle of April.

A partnership passes its revenue or losses directly to members, who must report to the IRS up to the individual tax deadline. The same applies to members of an LLC, since profits and losses are transferred directly to members based on the percentage of shares of each person, and they must submit annually within the same terms of individual tax filing.

How to Estimate Taxes in the United States

A corporation must report and pay estimated taxes using Form 1120-W. Quarterly payments are requested April 15th, June 15th, September 15th, and January 15th. In some cases, an S corporation must report and pay estimated taxes using Form 1120S.

Sole proprietors, partners and members of an LLC must also report and pay estimated taxes on a quarterly basis as required. Contact us!

Employee Taxes (Employment Taxes)

Regardless of the type of operating structure of your company, if your business has employees, you must report and pay taxes on employees. The company withholds income taxes and federal taxes, plus insurance contributions deducted from each employee’s paycheck, which must be submitted to the IRS.

The employer must also pay its share of the FICA (Federal Insurance Contributions Act) tax. The filing of these taxes occurs quarterly, using Form 941, and deposits depend on the frequency at which the business pays its employees. In addition, the company is responsible for paying the Unemployment Tax Act tax using Form 940. The company must file Form 940 by January 31 of each year.

Questions and Doubts? We know and understand the difficulty of keeping up with the IRS. Clarify your doubts, schedule an appointment with the Dominium Consulting team.

Payroll & Worker’s Compensation Exemption

• Payroll

You can share some responsibilities of your company with Dominium Consulting. For example, your employee payroll. We are prepared to handle this function by issuing checks for the filing of the necessary tax returns.

• Worker’s Compensation Exemption

For a corporation or LLC to obtain this exemption, it is necessary to be registered with the Florida Department of State. Also, you must list the candidate as an officer or company member in the institution’s records. Once the application is submitted, the Division of Corporations will have 30 days to review your application to determine if the applicant meets the eligibility requirements for the exemption. The Division of Corporations will issue a Worker’s Compensation Exemption certificate, which will be mailed to the address in the order. Notify you by email if your request is incomplete. If the answer is no, the candidate must submit a new Worker’s Compensation Exemption application.