The Different Types of Business Taxes.

The form of business you operate determines what taxes you must pay and how you pay them. The following are the five general types of company taxes:

 
Income Taxes
 
 All businesses except partnerships must file an annual company income tax return. Partnerships file an information return.

The federal income tax must be paid you earn or receive  income during the year. An employee of your company usually has income tax withheld from his or her pay. If you do not pay your  tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. If you are not required to make estimated tax payments, you may pay any tax due when you file your return.

Estimated Tax

Generally, you must pay taxes on income, including self-employment tax by making regular payments of estimated tax during the year.

Self-employment tax (SE tax)

A social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.

Generally, you must pay SE tax and file Schedule SE (Form 1040) if either of the following applies.

  • If your net earnings from self-employment were $400 or more.
  • If you work for a church or a qualified church-controlled organization (other than as a minister or member of a religious order) that elected an exemption from social security and Medicare taxes, you are subject to SE tax if you receive $108.28 or more in wages from the church or organization.

Employment Taxes

When you have employees, you as the employer have certain employment tax responsibilities that you must pay and forms you must file. Employment taxes include the following:

  • Social security and Medicare taxes
  • Federal income tax withholding
  • Federal unemployment (FUTA) tax

Excise Taxes

This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following.

  • Manufacture or sell certain products.
  • Operate certain kinds of businesses.
  • Use various kinds of equipment, facilities, or products.
  • Receive payment for certain services.
 
Corporate Income Tax Rates–2005-2017

       Taxable income over     Not over      Tax rate

          $         0        $    50,000        15%
               50,000             75,000        25%
               75,000            100,000        34%
              100,000            335,000        39%
              335,000         10,000,000        34%
           10,000,000         15,000,000        35%
           15,000,000         18,333,333        38%
           18,333,333         ..........        35%
 
Now how do you prepare your company to file this company tax accurately?
 
You should keep track of your expenses 
 
Keep track of your income
 
Collect all records gather them together
 
Find the right form that goes with the kind of company (business structure) youre running. There are different company tax rates
 
Fill out your form could be a Sch C or form 1120
 
Pay attention to deadlines. Be aware!

Are You Ready To Rise?

Subscribe NOW and Get Actionable Information delivered monthly

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit
0 Shares