2022 Tax Deadlines For San Francisco Startups

How Much Does a Startup Tax Return Cost? Try Kruze Consulting’s Tax Preparation Pricing Tool.

• JAN 31: Send 1099’ s to Contractors. Send W2’s to Employees. 1099-NEC for nonemployee compensation must also be e-filed to IRS on this date.
• JAN 31: Send 1095-B and 1095-C forms to Employees.
• JAN 31: Claim Research and Development Tax Credits on Prior Year Q4 Form 941, and file annual FUTA return on Form 940.
• FEB 28: W-2 and 1099-MISC, 1099-NEC filings are due on this deadline if paper-filing (due MAR 31 if e-Filing). File Form 8809 for a 30-day extension.
• FEB 28: IRS ACA Compliance 1094-B , 1095-B 1094-C and 1095-C filings are due on this deadline (if paper-filing, due MAR 31 if eFiling). File Form 8809 for a 30-day extension.
• FEB 28: SF Annual Gross Receipts Tax filing & payment deadline. Gross Receipts tax rates in San Francisco can vary depending on a business’ gross receipts - and business activity. Work with your accountant to determine if you need to file this; the limits are quite low so many funded startups will need to file. A 60-day extension is available for filing the return, but not paying any tax due.
• MAR 1: Delaware Annual Franchise Report filing deadline: Pay a min. of $400, +more if you have significant funding.
• APR 1: 571-L Business Property Tax filing due. Initial deadline.
• APR 10: Deadline to pay second installment of property tax bill to San Francisco County
• APR 15: File the CA Franchise Tax due with Form 100. Pay $800. Extension for time to file return (not pay tax) can be filed.
• APR 15: Q1 CA Form 100-ES Q1 Estimated Tax due (30% of estimated tax).
• APR 15: C Corp Form 1120 Tax Return deadline. Can extend to OCT 15 with submission of form 7004.
• APR 15: File the R&D Tax Credit Form 6765with your tax return. Can extend to OCT 15 as mentioned above.
• APR 15: Federal Quarterly Estimated Tax 1st installment.
• APR 29: Q1 Estimated SF Gross Receipts Tax installment payment.
• APR 29: Claim R&D Tax Credits on Q1 Form 941.
• MAY 7: 571-L Business Property Tax filing due. Final date to avoid 10% penalty.
• JUN 1: Delaware Quarterly Estimated Franchise Tax deadline, Pay 40% of estimated annual amount (if annual amount expected to exceed $5,000).
• JUN 15: Federal Quarterly Estimated Tax 2nd installment.
• JUN 15: Q2 CA Form 100-ES Q1 Estimated Tax due (40% of estimated tax). Note, CA does not require a Q3 installment.
• JUL 29: Claim R&D Tax Credits on Q2 Form 941.
• JUL 29: Q2 Estimated SF Gross Receipts Tax installment payment deadline.
• AUG 31: SF 571-L Business Property Tax payment due.
• SEP 1: Delaware Quarterly Estimated Franchise Tax deadline, Pay 20% of estimated annual amount (if annual amount expected to exceed $5,000).
• SEP 15: Federal Quarterly Estimated Tax 3rd installment.
• OCT 15: C Corp Form 1120 Tax Return final due date if extension was filed.
• OCT 31: Claim your R&D Tax Credits on Q3 Form 941.
• OCT 31: Q3 Estimated SF Gross Receipts Tax installment payment.
• NOV 15: File the CA Franchise Tax due with Form 100 (if extended).
• DEC 1: Delaware Quarterly Estimated Franchise Tax, Pay 20% of estimated annual amount (if annual amount expected to exceed $5,000).
• DEC 10: Deadline to pay first installment of property tax bill to San Francisco County.
• DEC 15: Federal Quarterly Estimated Tax 4th installment.
• DEC 15: Q4 CA Form 100-ES Q1 Estimated Tax due (30% of estimated tax).
• ROLLING: CA Statement of Information due. Pay $25.

How Much Does a Startup Tax Return Cost? Try Kruze Consulting’s Tax Preparation Pricing Tool.

If your Delaware C-Corp San Francisco funded startup needs tax help contact us today!

San Francisco, Startups and Taxes

San Francisco led the world in venture capital investment in 2018, according to the Center for American Entrepreneurship, and together with Silicon Valley, accounts for 13.5% of all global startup deals. It’s easy to see why startups are attracted to San Francisco’s booming startup economy. 

The most important taxing authorities for companies in San Francisco are: 

• State of California Franchise Tax Board 
• State of California Employment Development Department 
• City and County of San Francisco Treasurer & Tax Collector

In 2022, San Francisco has many, unique corporate tax deadlines beyond the traditional April 15th tax return date. Important filing deadlines include the San Francisco Gross Receipts filing deadline and the business property tax filings. See the calendar above for a more complete list.

San Francisco Gross Receipts Tax

The Gross Receipts Tax replaces the Payroll Expense Tax for 2021 and increases the tax rates on most industries. Companies subject to the Gross Receipts Tax need to file it as part of their annual business tax returns. Here’s an overview on the tax:

• Anyone other than landlords for residential real estate is subject to the tax if you were engaged in business in San Francisco and had more than $2 million in gross receipts.
• Gross receipts include revenue from sales, services, property sales, interest, rent, royalties, dividends, licensing or other fees, commissions, and distributed amounts from other businesses. Gross receipts do not include government grants or the Payroll Protection Program (PPP)
• The actual gross receipts tax rate varies based on the amount of gross receipts and the type of business activity. The tax rate for 2021 ranges from .053% to 0.42%. The business activity categories include:
  • Retail Trade/Certain Services (tax rates here)
  • Manufacturing/Food Services (tax rates here)
  • Transportation and Warehousing/Biotechnology/Clean Technology (tax rates here)
  • Accommodations/Arts Entertainment and Recreation (tax rates here)
  • Private Education and Health Services/Administration and Support Services/Miscellaneous Business Activities (tax rates here)
  • Construction (tax rates here)
  • Financial Services/Insurance/Information/Professional, Scientific and Technical Services (tax rates here)
  • Utilities (tax rates here)
  • Wholesale Trade (tax rates here)
  • Real Estate and Rental and Leasing Services (tax rates here)
• Businesses that have gross receipts from both within and outside San Francisco will need to to allocate those receipts based on the business activities listed above using the rules from the San Francisco Business and Tax Regulations Code.  
• Estimated business tax payments are due on April 30, July 31, and October 31. 

San Francisco Business Personal Property Tax

In San Francisco, items like furniture and equipment used to run a business, called the Business Personal Property (BPP), are subject to property taxes. BPP items include:

• Machinery, like washers, dryers, stoves, or refrigerators
• Office furniture
• Office equipment, like computers or telephones
• Supplies, like paper or cleaning supplies
• Fixtures, including plumbing or wiring 

Exempt items include licensed vehicles and business inventory.

If your business is in operation as of January 1, you should receive a Form 571-L notice in February from the San Francisco Office of the Assessor-Recorder. It’s important for you to keep good records for the acquisition cost of any BPP you buy during the year. You’ll use Form 571-L to report the acquisition costs of all BPP at each of your business locations in San Francisco, and Form 571-L must be filed by April 1. The Office of the Assessor-Recorder will determine an assessed value of your BPP and send a tax bill. If your BPP is less than $4,000, you will not owe a BPP tax. 

2021 Tax Compliance Deadlines For San Francisco Startups

2021 tax deadlines are supplied for reference purposes only, and should not be used when making decisions in 2022. Always consult your tax professional, and see our disclaimer below.

• JAN 1: San Francisco companies with 20+ employees: Post Paid Parental Leave Ordinance (PPLO) and Health Care Security Ordinance (HCSO) posters and begin compliance. Keep in mind that SB-83 is a California law that extends Paid Family Leave benefits from 6 weeks to 8 weeks for claims starting on or after July 1, 2020.
• FEB 1: Send 1099’s to Contractors. Send W2’s to Employees. 1099-NEC for nonemployee compensation must also be e-filed to IRS on this date.
• FEB 1: File Form 8809 for a 30-day extension to file W2’s and 1099-NEC for nonemployee compensation.
• FEB 1: Send 1095-B and 1095-C forms to Employees.
• FEB 1: Claim R&D Tax Credits on Form 941, and deadline to file annual FUTA return on Form 940.
• FEB 28: SF Annual Gross Receipts Tax for 2020 filing & payment deadline. Gross Receipts tax rates in San Francisco can vary depending on a business’ gross receipts - and business activity. Work with your accountant to determine if you need to file this; the limits are quite low so many funded startups will need to file.
• MAR 1: IRS ACA Compliance 1094-B, 1095-B, 1094-C and 1095-C filings are due (if paper-filing, due APR 1 if eFiling). File Form 8809 for a 30-day extension.
• MAR 1: Delaware Annual Franchise Report filing due: Pay a min. of $400, +more if you have significant funding.
• MAR 2: IRS 30-day automatic extension: provide Form 1095-B and Form 1095-C to Employees.
• MAR 31: IRS ACA Compliance 1094-B, 1095-B, 1094-C and 1095-C filings are due (eFile). Note that it is possible that lawsuits will invalidate the Affordable Care Act, but as of early November 2020 these filings are still required.
• MAR 31: 1099’s and W2’s must be e-filed with the IRS by this due date.
• APR 1: SF 571-L Business Property Tax filing due. Initial deadline. According to the SF Assessor’s office, California requires businesses to report their taxable property (machinery, equipment, fixtures, etc.) via a Form 571-L.
• APR 15: C Corp Form 1120 Income Tax Return due. Can extend to OCT 15.
• APR 15: File the R&D Tax Credit Form 6765 with your tax return. Can extend the tax deadline to OCT 15.
• APR 15: File the CA Franchise Tax due. Pay $800.
• APR 15:Federal Quarterly Estimated Tax1st installment.
• APR 30: Q1 2021 Estimated SF Gross Receipts Tax installment payment.
• APR 30: Claim R&D Tax Credits on Form 941.
• MAY 7: SF 571-L Business Property Tax due. Final date to avoid 10% penalty.
• MAY 31: Last day to electronically file the Form 571-L Business Property Statement . A 10% penalty will be added.
• MAY 31: SF Business Registration Renewal filing due. Payment calc’d on Gross Receipts.
• JUN 1: Delaware Quarterly Estimated Franchise Tax, Pay 40% of estimated annual amount (if annual amount expected to exceed $5,000).
• JUN 15: Federal Quarterly Estimated Tax2nd installment.
• JUL 31: Claim R&D Tax Credits on Form 941.
• AUG 2: Q2 2021 Estimated SF Gross Receipts Tax installment payment deadline.
• AUG 31: SF 571-L Business Property Tax payment due.
• SEP 1: Delaware Quarterly Estimated Franchise Tax, Pay 20% of estimated annual amount (if annual amount expected to exceed $5,000).
• SEPT 15: Federal Quarterly Estimated Tax3rd installment.
• OCT 15: C Corp Form 1120 Income Tax Return final due date if extension was filed.
• NOV 1: Q3 2021 Estimated SF Gross Receipts Tax installment payment.
• NOV 1: Claim your R&D Tax Credits on Form 941.
• DEC 1: Delaware Quarterly Estimated Franchise Tax, Pay 20% of estimated annual amount (if annual amount expected to exceed $5,000).
• DEC 15: Federal Quarterly Estimated Tax4th installment.
• ROLLING: CA Statement of Information due. Pay $25.