Forms of Paid Business Taxes by Small Enterprises
A small enterprise is a business that is marked by a limited finance and material flow and a few employees if any. A partnership, sole proprietor or a corporation that is privately owned qualifies to be a small business. There is a form of tax for every business to pay. Paid taxes by business can be state, federal or a local tax. It is necessary for a business to comply with tax payment in order to avoid legal consequences. Knowledge on the business tax is important for the business owner. Paying of the right type of tax that is dependent on their business will be ensured. The determinants of business taxes include products or services, business property, employees among others. Great legal impact can arise from these quick tricks of avoiding taxes. Mentioned are some types of business tax.
Income tax is a form of tax that is paid by businesses. The business profit determines he income tax that is to paid. Income tax is attracted by the business profit. The tax to be paid is also dependent on the type of business. The small business owners pay this tax by means of their personal income tax returns. VAT is an abbreviation of value added tax that applies to the products and services. Only eligible goods and services are levied this tax. some of the goods and services have tax exemptions and other have low VAT.
A business tax that is levied on business property is the property tax. Property tax is usually paid for any building or a real estate owned by the business. The tax is paid usually to the local authority. The authority to make payment to is usually the city or the county where the real estate property is located. Amount of the tax to be paid is dependent on the assessed value of the property. Another form of business tax is the self-employment tax. The owner’s share of income from the business is amount levied the tax. The benefits of this tax to the owners is Medicare and for social security. Cover for retirement, hospital insurance and disability are provided by the self-employment tax.
Excise taxes is a type of business tax levied on use and consumptions. Things like fuel, transportation and also communication are what the business owner is taxed the excise tax. A business that is in line with production and sale of items like alcohol, tobacco will require to pay excise tax. Employment tax is also paid by business owners. It is usually paid on the earnings of an employee of the business. The employee’s gross pay, is what will determine the employment tax that the business owner will pay. The tax is deducted from the employee’s salary but paid by the employer.
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