What You Need to Know About Small Business Tax

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At America’s Best Payroll, we want to help small business owners like you keep your operations running smoothly. One way we do this is by offering small business tax services. Small business taxes are more complicated than individual filings, so it’s smart to hire a professional to help you with them. In this article, we will go over some key information you should know about small business tax.

What You Need to Know About Small Business Tax

  • Small Business Income Tax – The first thing you should know about small business tax is that it includes an income tax. In other words, the government will take a portion of your company’s income for that year. The federal government charges a business income tax, and many states impose a separate state business income tax as well.
  • Sales Tax – Another small business tax you might need to worry about is sales tax. If you sell products of any kind or offer certain services, you will need to pay sales taxes on them. We can help you charge the right sales tax on your goods or services from the start to cover this tax burden later. Knowing you have things covered can give you great peace of mind.
  • Payroll Taxes – If your small business has employees, you will also need to deal with payroll taxes. These taxes cover programs such as Medicare, Social Security, and unemployment insurance. To make sure you can cover these small business taxes, you will need to withhold the appropriate amount from your employees’ paychecks throughout the year.