|
Written by Editor
|
|
Saturday, 13 August 2005 |
Federal Income Tax
Your business structure will determine your income tax requirements in regards to filing dates, forms required, and tax rates and to find out what your business structure specifically requires, you should contact your local IRS office. Federal taxes are on a pay-as-you-go plan with most business owners paying taxes quarterly. You can get all of this information from the IRS, specifically IRS Publication 505, Tax Withholding and Estimated Tax.
Self-Employment Tax
Individuals who are self-employed pay a self-employment tax, which is similar to social security and Medicare taxes that wage earners pay so that social security benefits can be available to those self-employed. For more information, contact your local IRS office and ask for IRS Publication 533, Self-Employment Tax.
State Taxes
It is nearly impossible to address all of the different taxes that states can impose on small businesses, especially since there are no uniform requirements and so each state varies in their tax imposition. It is best to contact your state to find out what taxing requirements they have. Local Taxes
In some areas, any property used in a business—machinery, equipment, furniture, etc.—can be taxed. Some cities and municipalities also require that every business that operates within their borders be taxed. For more information, contact your county government or local municipality. Sales and Use Tax
When a customer purchases your product or service, sales taxes are charged and it is your responsibility to collect those funds and send them to the appropriate agency. If your business sells goods or services that are subject to the sales tax, you must obtain a sales tax license from the state in which you do business. An exception to paying sales tax is commonly referred to as a resale exemption and refers to goods purchased to resell from manufacturers or wholesalers. A use tax is usually added to the sales price or rental charge for tangible personal property on which no sales tax has been paid. This often occurs when the item is purchased from a business in one state and shipped to the user’s state. |
|
Last Updated ( Saturday, 13 August 2005 )
|
