Yes, you are better off to file your business tax return on time even though you can’t pay your taxes due. You pay less in penalties if you file your taxes on time. The penalty of late filing will be added to the penalty of late payment of taxes and you end up paying more out of your pocket.
The pass-through companies such as LLC’s, S Corporations are penalized for late filing by IRS and if in California by the State.
The extension dead-line for the LLC and S Corporations is September 15th.
The extension dead-line for Individual tax return is October 15th.