2021 Tax Deadlines For C-Corp Startups

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

• 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 file annual FUTA return on Form 940.
• MAR 1: IRS ACA Compliance 1094-B , 1095-B, 1094-C and 1095-C filings are due (if paper-filing, due MAR 31 if eFiling). File Form 8809 for a 30-day extension.
• MAR 1: Delaware Annual Franchise Report filing deadline: Pay a min. of $400, +more if you have significant funding. You can estimate this franchise tax using our Delaware Franchise Tax Calculator.
• 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).
• MAR 31: 1099’s and W2’s must be e-filed with the IRS by this due date.
• APR 15: C Corp Form 1120 Tax Return due. The Federal Form 1120 is the U.S. Corporation Income Tax Return, which the IRS has companies use to report their income, losses, credits, etc. and to figure the income tax liability of the corporation. Can extend the deadline to OCT 15.
• APR 15: File the R&D Tax Credit Form 6765 with your tax return. Can extend to OCT 15. We strongly recommend working with a qualified CPA to prepare this form in conjunction with your Form 1120 if you are a high-growth startup - if your company is going to be acquired by a major technology company, that company’s CFO will use a strong tax team to do due diligence on this.
• APR 15:Federal Quarterly Estimated Tax 1st installment
• APR 30: Claim R&D Tax Credits on Form 941.
• 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
• AUG 2: Claim R&D Tax Credits on Form 941.
• 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 Tax Return final due date if extension was filed.
• NOV 1: Claim your Research and Development 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

The 8 Most Important Startup Tax Deadlines

It’s unfortunate, but even early-stage, just founded companies can have compliance and regulatory filing requirements. And like it or not, it is very important to keep your company in compliance, because when that venture capital term sheet comes, or the M&A due diligence starts, you really want to make sure that you’re not sending negative signals and don’t do anything that might delay that transaction. Additionally, you open your company up to a lot of potential regulatory issues - you can lose your corporation, or get hit with a bunch of penalties or extra paperwork -  things that can distract you from building your company. 

So here are the most important compliance deadlines to keep track of:

• W2’s to employees
• 1099’s to all contractors
• Delaware Franchise Fee
• State Franchise Fees
• Federal & State Returns/Filings
• R&D Credit and related Studies
• Municipal or City Filings
• Sales Tax

Obviously this is a long list. But compliance really is a big deal.

Important dates to remember for 2021

We have a more complete list above, but the most important corporate tax deadline for 2021 is the April 15th, 2021 IRS Form 1120 due date - and state tax returns are do as well on the 15th. In addition to the main corp tax deadline of April 15th, c corps also have estimated quarterly taxes due April 15h, June 15th and September 15th. 

Form 1120 Due Date 2021

In the year 2021, the federal tax filing date for c-corporations is April 15th (so the Form 1120 is due for the tax year 2020 on April of 2021). C-corps can file an extension with the IRS Form 7004.

On average, one to three of our clients are acquired each and every month, and we know the types of questions that the accounting firms at big, public companies are going to ask about (you can access our free due diligence checklist here). And compliance is a big one! Don’t let a life-changing transaction get sidetracked by these types of issues. Of course, we recommend working with an experienced CPA like Kruze - talk to us now.

2020 Tax Compliance Deadlines For Delaware C-Corp Startups

2020 tax deadlines are supplied for reference purposes only, and should not be used when making decisions in 2021 or beyond. Always consult your tax professional, and see our disclaimer below. These are for Delaware C-Corporations. 

• JAN 31: Send 1099’s to Contractors. Send W2’s to Employees. 1099-MISC for nonemployee compensation must also be e-filed to IRS on this date.
• JAN 31: File Form 8809 for a 30-day extension to file W2’s and 1099-MISC for nonemployee compensation.
• JAN 31: All US startups must send1095-B and 1095-C forms to Employees.
• JAN 31: Claim R&D Tax Credits on Form 941, and file annual FUTA return on Form 940.
• FEB 28: 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 extension: provide Form 1095-B and Form 1095-C to Employees.
• APR 1: IRS ACA Compliance 1094-B, 1095-B, 1094-C and 1095-C filings are due (eFile).
• APR 1: 1099’s and W2’s must be e-filed with the IRS by this deadline.
• APR 15: C Corp Form 1120 Tax Return due. Can extend to OCT 15. Even with COVID, if your business has filed an extension, the C Corp deadline is October 15, 2020. 
• APR 15: File the R&D Tax Credit Form 6765 with your tax return. Can extend the deadline to OCT 15.
• APR 30: Claim R&D Tax Credits on Form 941.
• JUN 1: Delaware Quarterly Estimated Franchise Tax, Pay 40% of estimated annual amount (if annual amount expected to exceed $5,000).
• JUL 31: Claim R&D Tax Credits on Form 941.
• SEP 1: Delaware Quarterly Estimated Franchise Tax, Pay 20% of estimated annual amount (if annual amount expected to exceed $5,000).
• OCT 15: C Corp Form 1120 Tax Return final tax deadline date if extension was filed. This is the final deadline for a C Corp Form 1120 Tax Return, even with the delays created by COVID. 
• NOV 2: 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)

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

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