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What types of taxes do small businesses typically have to pay?

Curious about Small-Business Taxes

What types of taxes do small businesses typically have to pay?

Small businesses may have to pay several types of taxes, including:

1. Income taxes: Federal, state, and local income taxes may be due on business profits.

2. Selfemployment taxes: If the business owner is also the sole proprietor, they will have to pay selfemployment taxes to cover Social Security and Medicare contributions.

3. Employment taxes: If the business has employees, it will have to pay employment taxes, including federal and state unemployment taxes, Social Security and Medicare taxes, and federal and state income tax withholding.

4. Sales taxes: If the business sells physical products, it may have to collect and remit sales taxes to the state.

5. Property taxes: If the business owns property, it may have to pay property taxes to the local government.

6. Excise taxes: Excise taxes are taxes on specific types of products or services, such as tobacco, alcohol, and gasoline.

It's important for small business owners to consult with a tax professional to understand which taxes apply to their specific business and how to stay in compliance.

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