Small businesses are no exception to the IRS and tax season. Owning a small business can feel overwhelming and scary at times, especially during the intense months of tax season. As with most aspects regarding taxes, it gets a little complicated. There are six main types of business taxes you should know about.
This is the tax on wages, investments, and gains. Basically, any money you have received as an income over the year. For a business, you also have to consider the net income you have received. The type of business you have set up will determine the forms you must file.
These taxes are complicated can end in penalties and criminal prosecution if not filed correctly or on time. It is important to ensure you are filing these correctly, so maybe you should leave it to the experts here at Pathways.
If you gained more than $600 last year, you must pay this tax as a self-employees individual. You’ll have to pay the entire amount of taxes that would have been taken out of your paychecks through the year.
For businesses that sell goods, you’ll need to understand this tax. While this tax is mostly included in the price of goods, you still are responsible for documenting and sending these taxes to the IRS.
Make sure that you are keeping track of the sales tax on items you are selling through your business. Each state is different, and along with that comes the responsibility of knowing the difference.
As simply as it sounds, the property you own is taxed as well.
Keep your business organized so tax season doesn’t feel so scary. If you still have trouble, schedule an appointment with Pathways today and have your taxes completed by professionals.
The Pathways Team