162490 Resource 149176 155860 149257 1174247344797 1174318257898 Controlled Small Business Owners: Basic Tax Information You Need to Know, Part 1

Basic tax information for business owners, and tax tips to make the process easier

Ah, yes. It’s tax time. The worry is in the air, along with anxiety and fret. As individuals, we all look forward to tax forms and audits about as much as root canals. But as a business owner, you may pay quarterly, you may have all kinds of deductions and expenses to cloud the mix, and you may feel like moving to Mexico. In this series, we’ll take a brief look at the types of taxes business owners pay, and additional tips when it comes to making sure you understand home-office deductions. First, let’s talk about types of taxes. The form of business you operate will dictate what taxes you must pay and the manner in which you pay them. According to the Internal Revenue Service, there are four general types of taxes as they relate to business: income tax, self-employment tax, employment tax, and excise tax. Income Tax. Unless you’re in a partnership, all businesses must file an annual income tax return (partnerships file an information return). The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year.  An employee 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 taxes.  If you are not required to make estimated tax payments, you may pay any tax due when you file your return. You may be required to make regular payments of estimated taxes during the year (estimated tax), including self-employment tax, which we will discuss in the next part of this series. Source: Internal Revenue Service 10 application/xml false business owners business tax business tax information small business small business owners small business tax tax information tax tips Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 2.0.50727; .NET CLR 3.0.04506.30; .NET CLR 1.1.4322) 127.0.0.1 127.0.0.1 cmalmstrom false true false false true 189572 false false true false false false true 149176 blog blogsite/FreedomVoice/web