Stay on Track in 2025 With These Compliance Reminders

For many business owners, a new year means a fresh start. One of the best ways to kick off 2025 is to stay on top of the many compliance obligations required of businesses. Being prepared ahead of time helps avoid the last-minute scramble and ensures your clients remain in good standing.  

Although many of these crucial dates can vary from state to state and business to business, the following is a list of important dates to remember in 2025.

Beneficial ownership information (BOI) reporting | Within 30 days 

BOI reporting was a new requirement designed to combat illicit financial practices, but two courts recently issued preliminary injunctions. The Supreme Court just lifted one injunction but the final outcome of this legal matter remains unresolved.

Many businesses, however, are choosing to complete their BOI reporting, to avoid possible fines and penalties should the litigation be resolved and the requirements reinstated. The deadlines vary, depending on when the business was formed. 

S Corp election deadline | March 17 

The S Corporation designation offers numerous tax benefits to businesses, including a pass-through taxation model, lower self-employment taxes for shareholders, and limited liability protection.

C Corporations or LLCs should be aware that the deadline to elect an S Corporation taxation model is looming. If you have clients that are interested in making the switch, they should consider doing it now.

Under law, companies must file IRS form 2553 two months and 15 days after the start of the 2025 tax year, which is March 17, 2025. For companies formed in 2025, they have two months and 15 days from their date of formation to elect S Corp status.  

Initial report | Within 90 days of registration 

In some states, corporations and LLCs are required to file an initial, also known as a Statement of Information, upon their formation. These reports include important information regarding the business and its owners.

Most states require companies to file their initial report within 90 days of registration, so it’s a good idea to keep on top of your clients’ registration dates to avoid fines or penalties. The following states require initial reports: 

• Alaska 

• California (Statement of information) 

• Connecticut (Corporations only) 

• Georgia (Corporations only) 

• Missouri (Corporations only) 

• New Mexico (Corporations only) 

Annual report deadlines | Various dates 

Corporations and LLCs must also file annual reports. Similar to initial reports, these documents must include vital information regarding a business. It should be noted that in some cases, annual reports are actually biennial reports (every other year).

The due dates and specific requirements for these reports vary from state to state. Currently, all states except Ohio require some type of annual or biennial reporting. 

Tax deadlines | Various dates 

Taxes are no doubt one of the most important compliance obligations of business owners. Tax season is right around the corner, so the sooner you get your client’s affairs in order, the better. Following is a breakdown of business tax obligations: 

• Sole proprietorship taxes: With no distinction between the business owner and the business, these taxes must be filed by Tuesday, April 15, 2025. 

• Partnership taxes: Similar to sole proprietorships, general partnerships make no distinction between the business and the business owners. However, limited partnerships must calculate their profits and loss via IRS Form 1065.
  
  They must also submit Schedule K, which breaks income into different categories. Both general and limited partners must obtain Schedule K-1 from their partnerships. These forms are due the 15th day of the third month after the end of the partnership’s tax year. Partnerships using Dec. 31 as their year-end must submit by March 17, 2025. 

• LLC taxes: By default, single-member LLCs are taxed as sole proprietorships, and multiple-member LLCs are taxed as partnerships and follow the same deadlines. But LLC members can also elect to be taxed as a C Corp or an S Corp, in which case different deadlines apply. 

• C Corporation taxes: As separate legal entities, C Corps file taxes separately from their owners. C Corps that operate on a calendar year basis must file IRS Form 1120 by April 15. C Corps that do not use a calendar year must file by the 15th day of the fourth month following the end of their fiscal year.  

• S Corporation taxes: LLCs and C Corps can elect to be taxed as S Corporations, allowing profits to be passed through to the owners.
  
  For S Corps operating on a calendar year, the deadline to file IRS Form 1120-S is March 17, 2025 with an optional extended deadline of Sept. 15, 2025. For S-Corps not operating on a calendar year, the tax filing due date is the 15th day of the third month following the end of the fiscal year.  

Annual meeting minutes  

Corporations and LLCs have specific requirements regarding meeting documentation, which varies from state to state and business to business.

Most states require C Corporations (including those with S Corp status), to hold an annual meeting for shareholders and an annual board of directors meeting. Although LLCs aren’t typically required by law to hold annual meetings, they must do so if outlined in their operating agreements or company bylaws.

If your client hasn’t yet scheduled their required annual meetings, they should get scheduled as soon as possible to ensure compliance. 

Dissolutions | Prior to December 

If you have a client who is considering dissolution, now is the time to get the ball rolling. Too often, business owners wait until the last minute, resulting in an end-of-year scramble.

The process involves filing Articles of Dissolution in the state in which the client does business; cancelling business permits, licenses and registrations; and notifying the IRS.

Corporations are required to file IRS Form 966. This should be completed prior to December of 2025. Otherwise, your client may risk tax obligations, fees and other compliance requirements in the new year. 

Stay in compliance throughout 2025 

It can often be a challenge to keep track of every deadline for every compliance obligation. But laying out a schedule at the beginning of the new year is a proven method to keep organized.

Preparing clients for what’s to come isn’t just a good business practice, it’s also a good way to ensure their business remains in good standing throughout 2025 and beyond.