General InformATION

Business Taxes refer to the various taxes' businesses are required to pay to Federal, States and local governments. Overview of the main types of Business Taxes:

• Income Taxes:
  • ​Federal corporate income: Business required to pay federal income tax on their net profits.
  • State Coporate Taxes: Many states also impose their own corporate income tax on businesses operating within their jurisdiction.
• Payroll Taxes
  • ​Social Security and Medicare Taxes (FICA): Business must pay a portion of their employees' social security and medicare taxes, in addition to withholding the employee share
  • Federal unemployment tax (FUTA): Business pay a federal unemployment tax that provides benefits to worker who lose their jobs
  • State Unemployment tax (SUTA): Many states also have their own unemployment insurance taxes that businesses must pay.
• Sales Taxes
  • ​Business that sell goods or certain services must collect sales tax from customers and remit it to the state and local governments
• Property Tax
  • ​Business may be required to pay property taxes on any real estate or personal property (E.G., Equipment, Machinery) they own.
• Excise Tax​
  • Business that manufacture, sell, or certain products or services may be subject to federal and state excise taxes, such as taxes on fuel alcohol, or tobacco.
• License and Permit Fees
  • ​Business may need to obtain various licenses and permits from state and local authorities, which open come with associated fees.
• Industry-Specific Taxes
  • ​Some businesses such as those in the financial energy.

The specific taxes a business may vary greatly depending on factors such as the business's location, industry, size, and legal structures (E.G, Sole Proprietorship, Partnership, Corporation). Business should consult with tax professionals to ensure they are complying with all the applicable tax.

Some of most common tax deductions and credits available to business, dividend in two categories:

Tax Deductions:

Business Expenses, Depreciation and Amortization

Interest Rate on Business Loans, Employee Salaries and Benefits

Vehicle and Travel Expenses

Legal and Professional Fees

Tax Credit:

Research and development (R&D) Tax Credit

Work Opportunity tax credit.

Small Business health insurance

Energy efficiency tax credit, Disabled access credit

Disabled access credit, Employer-provided childcare credit.