Small Businesses: Keep On Top of Important Tax Deadlines for 2025

For small businesses, spring means one thing: tax season. That means there’s no better time than the present to start getting the necessary paperwork in order. Whether you’re a one-person show or a larger corporation, there are several key dates to be aware of. Not only will you avoid a last-minute rush, you’ll also avoid possible fees or penalties and ensure your business remains in compliance.

Businesses with Employees

If you had employees or hired independent contractors in 2024, you are required to provide them with the appropriate federal tax forms. For employees who earned wages in 2024, W2 forms must be distributed by Jan. 31, 2025.

For independent contractors who earned at least $600 in 2024, you must file a federal 1099-NEC form with the IRS and provide the form to the worker by Jan. 31, 2025. Note that in years past, employers used the 1099-MISC form for both miscellaneous income and non-employee compensation, but it has since been replaced with form 1099-NEC.

Small businesses with employees that were required to pay federal and state unemployment taxes during 2024 are also required to report these payments. IRS Form 940, Employer’s Annual Federal Unemployment Tax Act (FUTA) Return, must be submitted by Jan. 31, 2025. However, employers that submitted taxes when due have until Feb. 10, 2025.

S Corp Election

If your business is an LLC or a C Corp, you may be eligible to elect S Corp status for federal income tax purposes. There are many benefits of S Corp status, including the avoidance of double taxation and self-employment taxes. If you’re interested in electing S Corp status, you must act fast. Existing companies with a tax year that began on Jan. 1 have until March 17 to file IRS Form 2553. Businesses that have a fiscal year other than the calendar year have two months and 15 days after the start of their fiscal year to submit the form.

Tax Deadlines

Staying on top of looming tax deadlines is a best practice for small business owners. Doing so helps you avoid fees and penalties and keeps your business in compliance. Following is a basic summary of due dates.

• Sole Proprietorship Taxes: Tuesday, April 15, 2025, with an optional extended deadline of Oct. 15, 2025.
• Partnership Taxes: The 15th day of the third month after the end of the tax year. For partnerships using Dec. 31 as their year-end, that date is March 17, 2025, with an optional extended deadline of Sept. 15, 2025. Limited partnerships must also list their profits and losses on IRS Form 1065 (U.S. Return of Partnership Income). Partnerships must also file Schedule K, which breaks income into different categories. Both general and limited partners must obtain Schedule K-1 from their partnerships for their own tax filings.
• LLC Taxes: By default, single-member LLCs are taxed as sole proprietorships, so their deadline is April 15, 2025. Multiple-member LLCs are taxed as partnerships, so their deadline is the 15^th day of the third month after the end of their tax year. However, LLCs can elect to be taxed as a C Corp or an S Corp, in which case those deadlines apply (see below).
• C Corporation Taxes: C Corps that operate on a calendar year basis must file IRS Form 1120 by April 15, 2025, with an optional extended deadline of Oct. 15, 2025. C Corps that do not use a calendar year must file by the 15th day of the fourth month following the end of their fiscal year.
• S Corporation Taxes: LLCs and C Corps can elect to be taxed as S Corporations. Those using a calendar year have until March 17, 2025 to file IRS Form 1120-S with an optional extended deadline of Sept. 15, 2025. For S Corps not operating on a calendar year, the tax filing due date is the 15th day of the third month following the end of their fiscal year.

What’s New for 2025

Following is a list of changes that will affect small businesses filing taxes for 2024:

• The standard mileage rate for business use of a vehicle is 67 cents for the 2024 tax year.
• The IRS has delayed the requirement that payment apps and online marketplaces issue 1099-K forms to taxpayers who receive over $600 in digital payments. That requirement will be phased in over the next several years. For 2024, third-party settlement organizations (TPSOs) must report transactions over $5,000.
• Previously, businesses were allowed to deduct 100 percent of meal expenses. Now, that allowance is only 50 percent. Some meals, such as those for events held for employees, customers, or the general public, are fully deductible. Entertainment expenses (such as concert or theater tickets) are no longer deductible.
• Pass-through business owners may deduct 20 percent of qualified business income for 2024 if their total income is not more than $191,950 (if filing single) or $383,900 (if filing jointly) before the QBI deduction, with some exceptions.
• The 2022 tax year was the last year where businesses could deduct 100 percent of qualified bonus depreciation for fixed assets.
• For tax year 2024, the maximum deduction for qualified bonus depreciation for fixed assets is 60 percent, with the deduction decreasing by 20 percent each year in the years to follow. The Section 179 depreciation limit for 2024 is $1,220,000 for federal purposes. States will have varying dollar limits for Section 179 depreciation. Please note vehicles have separate limits for both bonus depreciation and Section 179 depreciation.

Small Businesses: Get Ready for Tax Season Now

When you’re the owner of a small business, it’s never too soon to start getting ready for tax season. Familiarizing yourself with key dates and changes in tax law ahead of time can go a long way in ensuring tax season goes smoothly. Not only will this help you avoid 11th hour stress, it also ensures you avoid unnecessary fees and penalties.

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This article, "Small Businesses: Keep On Top of Important Tax Deadlines for 2025" was first published on Small Business Trends

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