Small Business Taxes: How to File For An Extension

If your small business has no taxes due, because your business lost money, you might consider filing for an extension. Note that filing for an extension is not an extension on when to pay, but when to submit the tax return. If you owe taxes, you would need to submit a payment by April 15, no matter what. Later, when you file the return, you might get a refund if you overestimated. However, if you underpaid, you would also pay interest on what was not paid.

You can download the forms for filing a Federal Extension here.

You can file for an extension online using FileLater.com  Visit FileLater.com.

Instructions:

1. If you are a S or C Corporation, Partnership or Multi-member LLC, fill out IRS Form 7004: “Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns”

2. Check the correct box for the type of form you are applying for an extension on. Here are some possibilities:

Multi-Member LLCs: (files taxes using Form 1065) Partnerships: (files taxes using Form 1065) S Corporations: (files taxes using Form 1120S) C Corporations: (files taxes using Form 1120)

The first two can get a five month extension. The second two can get a six month extension.

3. If you are a Sole Proprietorship, who files taxes using Form 1040, schedule C, or a Single Owner LLC, then you would file IRS Form 4868.

4. Fill out the corresponding forms for your state. Each state differs. For example, in California, “the California Franchise Tax Board only requires that you file for an extension if you owe California taxes. If you are expecting a refund from California there is nothing to be filed, an extension is automatically granted until October 15, 2009 for the filing of your 2008 tax return.”

However, if you are any type of business operating in California, you must pay a minimum francise tax (Currently $800), which means filing Form 3539.

For more information on California Taxes, see Taxes.