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Business Taxes

According to the IRS, the form of business you operate determines what taxes you must pay and how you pay them. The four general types of business taxes are Income Tax, Self-Employment Tax, Employment Taxes, and Excise Tax.  All businesses must file an annual income tax return and the returns you must file depend on how the business is organized, meaning the business structure or the business entity established.  

Find out more information about business taxes by contacting an expert. Contact a qualified local professional today for assistance with business taxes.

When starting a business, you must decide what form of business entity to establish. The business type determines the taxes to be paid and which income tax return form to file. According to the IRS, federal government imposes four basic types of business taxes, Income tax, Self-employment tax, Employer Taxes, and Excise tax.  

Some other issues associated with business taxes can be:

  • Minimizing Tax Burden
  • Taxes for Different Entities
  • IRS Taxes
  • State Taxes
  • Payroll Taxes
  • Sales and Use Tax
In addition to Federal Income Tax payable, almost every state has its own corporate income tax. Like federal taxes, the state tax requirement depends on the legal structure of the business. For example, if your business is an LLC, the LLC is taxed separately from the owners of the business, while sole proprietors report their personal and business income taxes using the same form used to report their business taxes.  A popular type of corporation is an S Corp, which avoids double taxation by allowing owners to split profits and losses with the business for a lower tax rate.

Self-employment tax is a social security and Medicare tax for individuals who work for themselves and counts towards future coverage in the social security system.  When a business has employees, there are specific employment tax responsibilities that must be paid.  Employment taxes include Social security and Medicare taxes, Federal income tax withholding, and Federal unemployment (FUTA) tax. Excise tax may be applicable if a business or individual manufactures or sells certain products, operates certain kinds of businesses, uses various kinds of equipment, facilities, or products, or receive payment for certain services.

Think about the benefits that will be realized for your business when you work with a tax professional. Contact a local tax professional today for assistance with your taxes.
Tax laws can be very complicated and are constantly changing.  Don’t make a costly mistake by being misinformed.  Usually when there is an error with taxes, the government will apply a penalty as well as interest.  These type of issues can be avoided by being up to date with the latest tax laws.