As a small business owner, you should be aware of crucial aspects such as your federal, state and local tax requirements, since they are key points of your business’s safe operation.
Another important fact that you should keep in mind is that your tax duties depend of a carefully-chosen business structure. Keep reading our blog, since we are going to teach you the main taxes that you are required to pay in your business, and how you can file them in order to avoid any delays in your payments.
Estimated Taxes
The necessity of Estimated tax arises when it comes to paying taxes on income that is not subject to withholding. Generally, it involves income from self-employment, dividends, and interest. Additionally, you are required to pay estimated tax in case the amount of your income tax is being withheld from your pension or salary.
As a rule, those individuals who have their own business must file estimated tax payments.
Energy Tax Incentives
Energy taxes is another type of taxes that you have to pay. However, you can drastically improve your home and business energy by making it more affordable. You have to devote some time in order to figure out programs and policies in your local state which support renewable and energy efficiency. Additionally, you should find out whether your state provides sales tax holiday on energy-efficient taxes.
Self-Employment Tax
If you have never had a business before, you are probably not aware of self-employment taxes. Generally, businesses have to pay a 15.3% FICA tax for supporting Social Security and Medicare. Both employees and employers have to pay 7.65%.
As a self-employed individual, you should pay nearly 15.3%. Keep in mind that you are provided with a chance to deduct part of the self-employment tax on your personal tax return. We suggest that you also read one of Prestige Auditor’s previous blogs where we talk about several undetected tax deductions for United States’ businesses.
Payroll Tax
If you are a business owner and have a designated staff in place, then you are required to pay payroll taxes on their wages. As a rule, Payroll taxes include federal income tax withholding, Social Security and Medicare taxes along with federal and state unemployment taxes. Generally, most business owners prefer to trust filing their tax forms and the process of managing their tax liabilities to professional tax experts like Prestige Auditors. You can contact our team or visit our website where you can find the chain of services that our team provides.
Excise Tax
Based on the types of your business and sphere that you specialize in, you can be required to pay excise taxes. These taxes are considered to be indirect taxes, since they are not paid in a direct way. Generally, excise tax is included in the final price of the product. So, if you are a business owner and sell products, then you have to collect these taxes from your customers and send them to the IRS.
Sales Tax
It is a rule of thumb that each of the U.S. states levies sales taxes on a state level; hence, it can drastically differ from state to state. As a business owner, you are required to collect sales taxes from your customers and report them to your local government. Read this blog about United States’ worst sales tax rates.
Property Tax!
If you are an owner of commercial property, then you are required to pay property taxes to the area where you run your business.
By launching a small business for the first time, you can meet several difficulties on your way. It does not really matter whether you are a single owner of a business or you decide to work with partners. You still have to be maximally informed when it comes to taxes.
Prestige Auditors are a professional service which help thousands of business owners run and build a safe and profitable business. We can help you figure out How to become tax exempt, teach you everything concerning e- commerce taxation. Or, do you need an LLC to sell online? Contact our team and we will solve any issue within your business within the shortest period of time. Also, you can visit our website where you can find detailed information concerning our services.
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