Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.
5 min. read
Updated January 5, 2024
Understanding the nuances of US business taxes can save you money and keep you compliant with federal regulations.
In this guide, we’ll cover the essentials of small business taxes, the types to be aware of, how to file, and potential deductions that can benefit your bottom line.
*Disclaimer: The content and answers of this guide provide a general overview, but tax laws and regulations can be complex. It’s always recommended to consult with a tax professional or accountant for specific guidance tailored to your situation.
Business taxes are taxes imposed on businesses and corporations by government authorities.
These taxes are based on the business’s structure, operations, and location. Different types of businesses are subject to specific tax regulations and rates.
Every business, regardless of its size, will have tax obligations. However, the type and amount varies.
Note: Nonprofits and cooperatives have distinct tax obligations to be aware of.
Unique forms, deadlines, rates, and deductions are just a few ways that filing business taxes differs from your personal taxes.
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With the right information and preparation, filing taxes can be smooth. First, be aware of deadlines, have all the necessary documentation, and understand your tax obligations.
You must have state and federal employer identification numbers (EIN) to legally hire employees, pay federal and state taxes, apply for licenses and permits, and open a business bank account.
Here are four useful tips to make sure you file your taxes correctly.
Learn why using a cloud-based tax filing service may be your best option as a small business.
Understand and leverage small business tax deductions to significantly reduce your tax bill.
Don’t expect that you can deduct every business expense. Here are the most common tax breaks to expect from running your business.
Learn what does and doesn’t qualify as a cost you can deduct.
If you have employees, you’re responsible for several additional taxes.
Check out these additional resources to understand taxes for different employee classifications.No card items added
Your business structure directly influences your tax obligations. Check out these resources to learn the unique tax implications of each structure.
Understand how registering as a sole proprietor impacts your taxes.
Understand how registering as a partnership impacts your taxes.
Improve your understanding of business taxes with industry-specific tips and resources.
Understand your tax liabilities as an eCommerce business and how to manage and report online sales tax.
Understanding small business taxes is crucial for any entrepreneur.
With the right knowledge and preparation, you can ensure compliance, optimize deductions, and set your business up for financial success.
But tax obligations are just part of the legal requirements you need to check off to start a business. While most can be completed in any order, here are some we recommend you explore: