Is Your Business Really Paying its Taxes?

Tax obligations for small businesses are more than just annual filing requirements at the federal level. Depending on the location of nexus, and the products or services you are providing, the obligations of each company will vary. Most freelancers and small businesses often fail to file correctly, causing them to be held accountable at a later time with penalty. Provided below are the most common taxes associated with business activity:

1. Income Tax

2. Estimated Tax

3. Self-Employment Tax

4. Employment Tax

5. Excise Tax

Each state also has a department of revenue, which will tax according to specific features of your business, such as: business structure, materials sold, services provided, and so forth. Tax liability in this level is usually (although not limited to) personal income tax, corporate income tax, sales tax, use tax, and real property tax. It is important to remember that states also have licensing authorities such as departments of professional business regulation, and agricultural/consumer service which have their own reporting requirements as well.

Finally, each city and county will differ vastly in how they manage and regulate tax collections within their respective jurisdictions. This is why it is always important to secure a Certified Public Accountant, Enrolled Agent, or call each office personally for guidance and correspondence when it comes to your business tax obligations.

Better to do business with caution and detail, rather than impulse and recklessness.

Evan A.

RIEC, LLC. Business Services