Why wait to start your business? Delay file today and save on taxes!
There are three types of filing options available to business owners: standard filing, expedited filing, or delayed incorporation filing.
A delayed incorporation filing gives small business owners the chance to pick the effective date that their LLC or Corporation is officially in business. This is often a popular choice for businesses incorporating at the end of the year.
Save money -
Setting an effective date can help you save money on your taxes, even more so if you plan on filing at the end of the year. If your business incorporates at the end of the year, you still have to pay taxes and annual reporting fees for that year. Even though your business has only existed for one month, you still have to take the time to file and pay taxes for that year. With a delayed incorporation filing you can set a date in the future to officially incorporate your business. This ensures that you know when your business is officially live and responsible for the taxes in that calendar year. For example, the most popular option is to set your delay date at the beginning of the year to avoid having to pay taxes for only the small amount of time you would have been officially registered as a business in the year prior.
Save time -
Once you set a date for your incorporation, you can focus on getting together all other needed documents and filings. Filing all necessary business licenses and permits needed for your company, lining up a physical address, and hiring employees, all can be done in the meantime to be ready to go by your incorporation date. Usually, people rush to get your LLC or business registered and then have to hurry to see everything else up before you can actually begin business. Delay filing will allow you more time to get everything in line with much less stress and pressure.
Pick a significant/special date -
Having the ability to choose the incorporation date of your business allows you to place it on a date that might be significant to you or your business. Starting a business is a big deal and having a significant day of its beginnings can be very meaningful.
As mentioned before, there are two other filing options on the table for your business, standard and expedited filing. Depending on what your business needs are, all options have their benefits. Delay incorporation filing is a great option in certain circumstances like the example mentioned. Evaluate your options and get to work on your new business!
