When Should Your Business Opt for a Delayed Filing?
First of all, what exactly is a delayed filing? A delayed filing essentially puts the paperwork to file your business on hold. Now you might be thinking, “Why would I ever take an already slow process and prolong it even further?” But a delayed filing can come in handy for a lot of reasons, especially towards the end of the year. Here are three reasons your new business should opt for a delayed filing:
When you’re filing at the end of the year.
If you decide to start your new business towards the end of the year, you could get stuck paying annual taxes and fees for the right to operate your business during the last month of the year. With a delayed filing, most states will allow you to push your filing date to the next month (in the New Year) so you don’t have to pay only a month’s worth of taxes and fees for the previous year. In the time of your delay, you will simply be running your business as a sole proprietor for one more month prior to gaining the protection of an LLC or Corporation. In addition to avoiding the fees and taxes of the last little bit of the year, you can avoid paying the annual reporting fee for your state for 2014. So if you’re just now getting to filing your new business, I suggest holding off with a delayed filing until January to avoid any extra fees.
When you want to save time (in the long run).
So if you originally planned to file at the end of the year and choose to go with a delayed filing, your file will be moved to January. January has a reputation for being a bit of a nightmare for the state office. Lots of entrepreneurs seem to have the same resolution of “finally filing my business” come each and every January. However, the state gives delayed filings priority at the beginning of the year, so you get to pass over all of the normal filings, saving yourself a lot of time. With a delayed filing, you can take advantage of all the benefits of filing in the New Year, and you get to avoid the huge January rush.
When you realize you’re not quite ready.
There is a lot to prep for the official opening of a business. If you realize that you want a couple more financial backers, or you want to start scoping out a solid, loyal team before really getting the ball rolling, a delayed filing can buy you that extra time. A lot of new entrepreneurs have the tendency to dive into things. Having a legal entity comes with its fair share of responsibilities, so if you want to make sure you have all your ducks in a row before really diving in, a delayed filing is the way to go. No one wants to start his new business on unsure footing — a delayed filing will give you the time you need to figure everything out and start confidently.
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