The last thing that any small business owner wants to do is run into tax trouble. Knowing what you are responsible for paying can help you avoid under or overpaying when it comes time to file your taxes. It is vital that you are keeping your books up to date to make your taxes a much simpler process. The taxes you pay when you own a small business will look quite a lot different than what your taxes look like as an individual who doesn’t own a business. Mark Dicus & Company is here to walk you through what you’re responsible for as a small business owner.
Income Taxes
As a business owner, you are responsible for paying income taxes whether or not you are making money or losing money. Your income tax return will look different depending on what legal structure you have chosen for your business. Some businesses like sole proprietorships will be combining their business tax return and individual tax returns together, as they are the same thing. However, taxes will look different for corporations and other business structures.
Estimated Tax
Often, for business owners, you will pay income taxes as you go throughout the year. When you don’t do this, you might be required to pay an estimated tax instead. You will pay taxes on an estimated amount of money that includes things like interest, dividends, rent, profits, income and more. You pay this in good faith, but don’t estimate too low as you can get fined for that.
Employment & Payroll Taxes
Any business that has employees will have another set of forms that they need to fill out so they can pay employment and payroll taxes. Employment taxes include things like FICA, income taxes that are held from the employee’s pay, and federal unemployment tax. When it comes to paying social security and Medicare taxes (FICA), you will pay for half of those taxes and the employee will pay the other half.
Excise Taxes
There are other random taxes that business owners are responsible for paying. These fall under the umbrella term of excise taxes. It includes things like environmental taxes, communication and transportation taxes, as well as fuel taxes and the like. Not every business is responsible for paying these taxes, so make sure you’re discussing it with your accountant. If you do have to pay them, they will be paid quarterly.
State Taxes
You will also have tax demands put in place by the state that you live in. These taxes will vary from place to place. If you do business in multiple states, you might need to pay taxes in more than one state.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
There are other taxes that some business owners are responsible for paying. If you aren’t sure what you owe as a small business owner, you can turn to Mark Dicus & Company to answer all of your questions. We will make sure you’re paying what you need to without overpaying. Call us today!