State vs. Federal Tax Deadlines 2025: What Business Owners Need to Know

• S-Corporations (Form 1120S) & Partnerships (Form 1065): These entities must file their returns by March 17, 2025. If an extension is needed, businesses must submit Form 7004 to extend the deadline to September 15, 2025.
  
  
• LLC Tax Filing: The filing deadline depends on how the LLC is classified for tax purposes:
  
  
  • Single-member LLCs (taxed as sole proprietorships) file under the owner’s personal tax return (Form 1040) by April 15, 2025.
    
    
  • Multi-member LLCs (taxed as partnerships) must file Form 1065 by March 17, 2025.
    
    
  • LLCs taxed as corporations follow the deadlines for C-Corporations or S-Corporations.
    
    
• Quarterly Estimated Tax Payments: Businesses that don’t have taxes automatically withheld must make estimated tax payments throughout the year:
  • Q1: April 15, 2025
  • Q2: June 16, 2025 (adjusted for holiday/weekend)
  • Q3: September 15, 2025
  • Q4: January 15, 2026

Extension Options and How They Affect Tax Payments

If businesses need additional time to file, they can request an extension using Form 7004. However, it’s important to note that:

• An extension only applies to filing the tax return, not to tax payments.
• Businesses must estimate and pay their owed taxes by the original deadline to avoid penalties.

Proper tax planning ensures businesses meet deadlines and avoid unnecessary financial strain. In the next section, we’ll look at how state vs. federal tax deadlines differ and what businesses need to know about California tax obligations.

Related article: Why Early Tax Filing is Critical for Avoiding Tax Stress in San Francisco?

California Business Tax Deadlines 2025: What Sets Them Apart?

While the federal tax deadline of 2025 applies to businesses nationwide, each state has its own tax regulations. In California, businesses must comply with additional filing and payment requirements, enforced by the Franchise Tax Board (FTB). Understanding the California tax deadlines is essential to avoid penalties and stay in good standing with the state.

Overview of California Business Tax Obligations

California businesses are subject to various state taxes, including:

• Corporate Income Tax – Applies to C-corporations based on net income.
  
  
• Franchise Tax – Minimum $800 tax for LLCs, S-Corporations, and other entities doing business in California.
  
  
• Gross Receipts Tax (for certain businesses) – Based on revenue instead of income.
  
  
• Estimated Tax Payments – Required for corporations and LLCs expecting to owe more than $500 and $800, respectively.

Important California Business Tax Deadlines for 2025

• Corporation Tax Return (CA Form 100): Due April 15, 2025, with an automatic six-month extension to October 15, 2025 (payment still due in April).
  
  
• S-Corporation (CA Form 100S) & Partnership (CA Form 565): Due March 17, 2025, with an extension to September 15, 2025, if needed.
  
  
• LLC Franchise Tax ($800 Minimum, CA Form 568): Due April 15, 2025, for LLCs taxed as sole proprietorships or C-corporations. LLCs taxed as partnerships or S-corporations follow their respective deadlines.
  
  
• Estimated Tax Payments for 2025:
  • Q1: April 15, 2025
  • Q2: June 16, 2025
  • Q3: September 15, 2025
  • Q4: January 15, 2026

Differences in Extension Policies Compared to Federal Tax Filing

While the IRS allows extensions with Form 7004, California automatically grants a six-month filing extension, but tax payments must still be made by the original deadline to avoid interest and penalties.

Businesses operating in California need to track both state vs. federal tax deadlines to ensure full compliance. In the next section, we’ll compare key differences between business tax deadline 2025 requirements at the state and federal levels.

Federal vs. State Tax Deadlines: Key Differences That Matter

Businesses must track both state vs. federal tax deadlines, as they often don’t align. Each state has its own tax regulations, filing requirements, and payment schedules, which can create additional complexity for business owners.

Why State and Federal Tax Deadlines Don’t Always Align

• The federal tax deadline 2025 for most business entities is April 15, 2025, while certain states, including California, have different deadlines for partnerships, S-corporations, and estimated payments.
  
  
• Some states automatically extend deadlines, whereas the IRS requires businesses to file for an extension.
  
  
• State deadlines may also differ based on tax classifications, franchise taxes, and local business levies.

Varying Penalty Structures and Interest Rates for Late Payments

• The IRS imposes a 5% monthly late filing penalty, while state penalties, like those in California tax regulations, may be different.
  
  
• The California Franchise Tax Board (FTB) applies a minimum $800 franchise tax penalty if an LLC fails to file, in addition to late payment penalties.
  
  
• Interest rates on overdue state taxes may be higher or lower than federal interest rates, depending on state policies.

State-Specific Tax Requirements Beyond Federal Filings

• Many states impose additional taxes beyond federal obligations, such as gross receipts taxes, franchise taxes, or excise taxes.
  
  
• In California tax law, LLCs must file CA Form 568 and pay an $800 minimum franchise tax annually, even if they don’t generate income.
  
  
• Businesses operating in multiple states must comply with tax laws in each state, which may require separate filings beyond the business tax deadline of 2025 at the federal level.

Tax Planning Strategies to Stay Ahead of Deadlines

Proactive tax planning is essential to avoid last-minute stress and financial penalties. Here are some key strategies to help businesses stay compliant with the federal tax deadline of 2025 and state-specific obligations.

Best Practices for Managing Business Tax Obligations:

• Keep accurate financial records and update bookkeeping regularly to track taxable income and deductible expenses.
  
  

Working with an experienced tax professional ensures accuracy, maximizes deductions, and helps businesses navigate complex tax regulations.