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Business Taxes 

Each different type of business structure affects how much you must report to the IRS and determine what type of tax return your business must file and how you will be paying them. 

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There are five general types of business taxes:

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1- Income Tax 

  • Run on a Pay as you go basis by having taxes withheld or by making quarterly estimated payments. 

  • Filled and paid by all business except partnerships 

  • Annual tax to be paid when you receive income during the year. 

  • Each business structure has a different type of income tax return.

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2- Estimated Tax

  • If you have income that is not subject to withholdings, you need to make estimated quarterly payments 

  • You pay the quarterly estimated taxes to pay for your income tax and other types of taxes such as self-employment tax figures, interest, and dividends

  • To calculate Estimated Tax Figures, individual can use FORM 1040ES and FORM 1120W for Corporations. 

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3- Self-Employment tax 

  • Self-employment is a separate tax from your income tax, 

  • SE is comprised of two types of taxes; The Social Security and Medicare tax for individuals who work for themselves. 

  • As an employee of a company, your employer and you will pay for the Social Security and Medicare Tax. 

  • If you work for yourself and has your own business, you will be required to pay for both portions of that tax. 

  • Self-employment is calculated on Schedule SE of FORM 1040

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4- Employment Taxes

  • Employment Tax is paid by employees and their employers. 

  • Employment Taxes include:

  •  Social Security and Medicare Taxes, 

  • Federal Income Tax Withholding 

  • Federal Unemployment Tax Act - FUTA 

  • You must deposit the Federal Income Tax  and both Social Security and Medicare Taxes on time. 

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5- Excise Tax

  • Excise Tax imposed on specific goods and services such as Fuel, Gasoline, and etc. 

  • Excise Tax could be a federal excise tax or state excise tax and its different from the Sales and use tax.

  • Federal Excise Tax is reported on Form-720 

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We are certified tax professionals with the IRS and authorized E-FILE provider. 

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