Business Taxes

You’re busy running your small business. You probably don’t have a lot of time to devote to business taxes. But ignoring them can lead to trouble for your business. As a small business owner, you must understand the taxes your business must pay. Otherwise, you could pay interest, have your property seized, or worse.

Business taxes are complex. There are federal and state taxes you must stay on top of. Talking to a business tax attorney in your area is a good idea. They can give you legal advice and explain the tax laws in your state.

What Are Business Taxes?

Business taxes are taxes business entities must pay. As a small business owner, you may have to pay federal, state, and local taxes. The taxes your business must pay and how you pay them depends on location and business structure. Following are the four categories of business taxes:

• Income tax: All businesses except partnerships must file an income tax return annually.
• Self-employment tax: Self-employment tax is the tax people who work for themselves must pay.
• Employment taxes: You must pay employment taxes when you have employees. These include unemployment and payroll taxes.
• Excise tax: You may have to pay excise taxes if your business manufactures or sells certain products, receives payment for certain types of services, or uses particular kinds of facilities, equipment, or products.

As a small business owner, you should know the taxes your business must pay. You should also know about the available tax credits and deductions.

What Happens if I Don’t Pay My Business’s Taxes?

Your small business must file a tax return. The Internal Revenue Service (IRS) governs federal business taxes. The IRS sets different due dates for returns based on business type. Taxes are due on your filing date.

The IRS may charge interest when a business has unpaid taxes. Businesses may suffer more severe penalties if they continue not to pay. The IRS can garnish your bank accounts or seize your business’s property. It can also file a tax lien. A lien can hurt your credit rating and make it harder for you to operate your business.

When Do I Need a Lawyer’s Help?

Tax situations vary. Tax attorneys and certified public accountants (CPAs) are tax professionals who can help. But they play different roles in helping your small business with tax issues.

A certified public accountant (CPA) can help with many tax matters. Examples include tax preparation and tax filing. They can help you maintain your financial records and prepare financial statements. CPAs also offer tax planning throughout the year. Good planning can help reduce your business’s tax liability.

A small business tax lawyer often has education beyond law school. They provide legal services and can help you understand the federal tax code. They can provide legal representation in tax disputes and tax courts. Tax attorneys can also help with tax planning.

Navigating state and federal taxes for small businesses can be daunting. Contacting a small business tax attorney is a good idea if you want to avoid tax issues. They can also represent you if you find yourself in a dispute.