An LLC is a pass-through entity, meaning that the profits and losses pass through the company to the owners. In a corporation, income taxes are paid by the corporation itself, not by the owners directly. The income of the corporation doesn’t reflect in any way on the owner’s personal tax return.

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If you get paid under a W-2 form, you only pay half of your Social Security taxes and Medicare taxes. The employer must pay the other half. This means you pay 7.65 percent of your wages for these taxes. The taxes are deducted from your paycheck.

If you get paid under a 1099 form, you will pay a total of 15.3% of your NET wages for Social Security and Medicare taxes. Meaning to say, that the tax rate is higher, but if you have business expenses throughout the year, they can be deducted from your gross income amount and not be taxed at all. The taxes are NOT deducted from your paycheck, they are paid when filing the tax return.

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Individual tax returns are due on April 15th of the following year. Taxpayers may file form 4868 to request for an extension, which will allow them to file until Oct 15 (taxes owed must be paid timely, there’s no extension available for that).

LLC, S-Corp and Partnership Tax Returns are generally due by the 15th day of the third month following the end of the tax year (Mar 15, if a calendar year). A 6-month extension may be filed (Form 7004), which will extend the filing deadline to Sep 15 for calendar year filings.

Corporation Tax Returns are generally due by the 15th day of the fourth month following the end of the tax year. However, a corporation with a fiscal tax year ending June 30 must file by the 15th day of the 3rd month after the end of its tax year.

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