It’s that time of year when we’re all thinking about filing our individual tax returns – however, there are also taxes for small businesses that need to be addressed to avoid the dreaded IRS audit, which can put the brakes on whatever you may be trying to accomplish.
The IRS site provides some explanation of the taxes a small business can be responsible for paying – these include: income taxes, self-employment taxes, employment taxes and excise taxes.
All businesses except partnerships are required to file an annual income tax return…partnerships file an informational return.
Self-employment taxes are for individuals who work for themselves, covering Social Security and Medicare. If you have employees, employment tax(es) cover this along with income withholding and unemployment insurance taxes.
Depending on what you do, you may have to pay excise taxes as well. These apply to companies that manufacture or sell certain products, operate certain kinds of businesses, use various types of equipment and receive payment for certain services.
Of course, it’s important to consult with an accountant to find out exactly what taxes you must pay…but short of that, take a look at the IRS’ Business Tax article to learn more.