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The Several Types Of Taxes A Small Business Needs To Pay Thursday, May 27th, 5:00 AM
A Glance At Various Small Businesses Yearly Taxes That They Need To Pay

Brandon, United States - May 27, 2021 / Accurate Tax & Bookkeeping Services /

Paying taxes can sometimes be very complicated. There are state, local, and federal taxes besides taxes that are dependent on the business activities. It can be mind-boggling. So a tax preparation service would be an ideal way to manage the taxes in an effective and errorless manner.

The professionals at Accurate Tax & Bookkeeping Services, a full-service tax, accounting, and consulting firm located in Brandon, attempt to demystify the tax system for small businesses.

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Broadly speaking there are state, local and federal taxes that need to be paid. The State and local tax laws vary by location and business structure.

Here are five general types of business taxes.

Each category of business tax might have special rules, qualifications, or IRS forms that one needs to file.  

1. Income tax for small businesses

A corporate income tax (CIT) is levied by federal and state governments on business profits, which are revenues (what a business makes in sales) minus costs (the cost of doing business). How this tax is paid depends on the form of the business.

  • Most small businesses are pass-through entities, which means that the gains or losses are passed through to the owners on their tax returns.
  • Sole proprietors and single-member LLC owners pay income tax based on the net income of their business.
  • Partners in partnerships and multiple-member LLC owners file a partnership business tax return for information purposes only.

2. Self-Employment Tax 

Self-employment taxes are paid by sole proprietors, partners in a partnership, and LLC owners for Social Security and Medicare, based on the net income of the business. 

3. Estimated Taxes for Business Owners

Since the owners’ income tax and self-employment tax is not withheld from the money they take out of their business, an estimated tax must be paid quarterly to the IRS.

4. Sales Tax 

Businesses don't directly pay sales tax on products and services they sell. But if a business operates in a state that has a state sales tax, a system to collect sales tax and pay it to the state must be set up. This system is also applicable for specific products and services that are sales-tax eligible, depending on state laws. 

5. Property Tax 

Property tax is a local tax. If a business owns real estate, it must pay property tax to the local taxing authority, which is usually the city or county where the property is located.

The tax is based on assessed value. 

When a business property is being sold, capital gains taxes on the difference between the initial cost and the selling price need to be paid to the federal government. 

6. Excise Taxes 

Usage or consumption, such as fuels or other activities like transportation and communication will levy excise taxes. These are paid to the IRS, either quarterly or annually, depending upon usage.

7. Employment or Payroll Taxes 

Employment taxes are paid by employees and employers, including:

  • Federal income tax withholding from employee pay
  • FICA taxes for Social Security and Medicare, paid by both employees and employers
  • Federal unemployment (FUTA) taxes, paid by the employer

8. Gross receipts tax

Most states have a state income tax for businesses. But some states, like Nevada and Texas, impose a gross receipts tax on businesses instead of, or in addition to, a state income tax. 

Sole proprietorships are usually exempt from paying gross receipts taxes but not from state income tax. 

Accurate Tax & Bookkeeping provides tax services for small businesses and takes care of all these baffling tax and other accounting tasks for its clients effectively.

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About ATBS

Accurate Tax & Bookkeeping Services specializes in handling financial needs for businesses of all sizes.

Greg J. Menia founded the tax preparation service company in 2010, having worked in business tax services since 1995. The team performs tax services for small businesses and large businesses alike, serving all areas around Tampa, FL. 

Call (813) 655-9702 today for “accountants near me” in Brandon, Florida. Alternatively, contact Greg and the team at Accurate Tax & Bookkeeping Services by emailing [email protected] or visiting the offices at 710 Oakfield Dr. Suite 159, Brandon, FL 33511.

Contact Information:

Accurate Tax & Bookkeeping Services

710 Oakfield Dr Ste 125
Brandon, FL 33511
United States

Greg Menia
https://brandonaccountant.com

Original Source: https://brandonaccountant.com/press-releases

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