Small Business Taxes & Tax Issues
As a business owner, there are many types of taxes that you are required to pay. While not the most glamorous part of owning a business, you must pay close attention to your tax situation. Not only will this help keep you in compliance with the federal, state, and local governments, but you may be able to cut your tax bill by taking a few key steps.
The type and amount of business taxes that you pay is based on many factors, including the structure of your organization.
The Most Common Business Structures:
- Sole proprietorships
- Partnerships
- Corporations
- S Corporations
- Limited Liability Company (LLC)
Your business structure will determine the type of taxes that you pay, as well as the forms that you are required to file.
Business Tax Types
Once you decide on a business structure, you need to focus on finding out what type of taxes you are required to pay. Along with this, you must learn more about how you pay them. The four general types of business taxes include:
- Income tax
- Self-employment tax
- Employment taxes
- Excise tax
While these are the most common general categories of business taxes, there are others that you should be aware of:
- Property tax
- Gross receipts tax
- Sales tax
- Franchise taxes
There is no denying that you will spend most your time growing your business and focusing on customer service. However, you don’t want to overlook how important it is to pay your taxes in full and on time. You must comply with the IRS, as well as your state and local taxing authorities. If you don’t, you may find yourself getting behind and in turn owing interest and penalties on your account.
To ensure that you are always on the right track, hire an experienced accountant to handle your business taxes and related details.
