U.S. Business Taxes for Small For-Profit Businesses
Scope of Information in this Library Topic
This library could include thousands of links to tax-related sites. As with other topics in the library, there are enough links included below to cover the basics and help the reader find more information if needed. Regarding federal taxes (the type of taxes most written about), the most comprehensive overviews are included in IRS Publications 17 and 334 (links to these are included below). Many federal tax-related links on the Web are to articles that are basically a rewrite of information that's already in these two publications. Other types of taxes are reviewed below, too
Sections of This Topic Include:
Educate Yourself -- Key Guides to Get StartedBasics -- Overviews of Small Business Tax Management
Tax Planning
Importance of Good Record Keeping
Do Your Own Taxes or Get Help?
Federal Income Taxes Obligations
Employee/Payroll Taxes Obligations
State and Local Sales and Use Tax Obligations
Other Taxes (Property, etc.)
Special Topic -- When Hiring, Need Independent Contractor or Employee?
General Resources
Internal Revenue Services (IRS) SitesNon-IRS Tax Information and Resources
Educate Yourself -- Key Publications For You to Get Started
Whatever the condition of your business finances, always pay your taxes. The Internal Revenue Service (IRS) states that small businesses pay four kinds of taxes: Income tax, Self-employment tax, Employment taxes, and Excise taxes. The form of business determines what kinds of taxes you'll pay. (More on this later.)If the nature of your business is fairly consistent from year to year, you may be able to manage your business taxes by yourself. However, you may be better off the first year to hire a tax advisor. BUT, you should still be aware of the basic process -- time spent studying taxes is time spent saving money! There are several basic publications from the IRS that you should get and review. The following 2 publications take about 3 hours to go through -- it will be some of the best time you spend to save money for your business. The following section "Basics -- Overviews of Small Business Tax Management" will help you, as well.
Get and review these IRS free publications
Your Federal Income Tax for Individuals (Publication 17)Tax Guide for Small Business (Publication 334)
Know the Legal Description of Your Business
It matters whether you're a sole proprietorship, partnership, corporation (and which type of corporation), limited liability corporation, etc. You probably know this already if you have registered your business with your state. Otherwise, review the materials in Enterprise Law.Basics -- Overviews of Small Business Tax Management
After you've reviewed these publications, the following may be helpful for review.Frequently Asked Questions About Small Business Taxes
Tax Planning -- Various Perspectives
Now that you've got some sense about business taxes, it'll help to stand back and think about the best approach to managing your taxes.Controlling Your Taxes
Importance of Good Record Keeping
Good tax management starts with good record keeping, especially financial records. Be sure you're familiar with financial records. SeeFinancial Statements
Do Your Own Taxes or Get Help?
If the nature of your business is fairly consistent from year to year, you may be able to manage your business taxes by yourself. However, you may be better off the first year to hire a tax advisor.Should I Use a CPA to Do My Taxes?
Using a Payroll Service
As a new business, you should strongly consider using a payroll service. This type of service can work with your tax advisor (or provide tax advice, as well) to ensure regular and accurate withholdings for various types of taxes. The service can also produce the reports needed to file your yearly taxes. You might get a recommendation for a service by calling your local association of certified public accountants or several businesses that are similar in nature to yours. Your local Chamber of Commerce may know several good sources, as well.Software Packages to Do Your Taxes
Software Packages to Do Your TaxesFederal Income Taxes Obligations
Your Federal Income Tax ObligationsEmployee/Payroll Tax Obligations
(includes Federal, State and Local Taxes)
State and Local Sales Tax Obligations
Your Sales Tax ObligationsSales Taxes
State Tax Agencies
State Taxes Obligations
State Tax AgenciesUse Taxes
Use TaxesOther Taxes (property)
Other taxesSpecial Topic -- When Hiring, Need Independent Contractor or Employee?
The IRS seems increasingly skeptical about business use of independent contractors. The IRS is concerned, for example, that businesses might be avoiding employment taxes by using independent contractors instead. Therefore, businesses must be careful when determining if they should hire a contractor or an employee. The following link will help you in this regard.Potential Issues in Hiring Consultants (general information and IRS-related issues)
Internal Revenue Service (IRS) Sites
IRS General Information and Assistance Sites
IRS Help DeskIRS Telephone Numbers
IRS Tax Tips for Individuals
IRS's "Digital Daily" Newsletter Publication
IRS General Information for Small Businesses
IRS Tax Info for Businesses -- home page of the IRS website for small businessesIRS Online Preparation, Forms, Tables, Addresses
IRS e-file (preparing and filing taxes online)IRS Online Forms and Guides
IRS Tax Tables
IRS Filing Addresses
State Tax Agencies
U.S. Tax Code
U.S. Tax Code OnlineNon-IRS Tax Information and Resources
The following sites include a great deal of various types of information about business taxes.Yahoo!'s tax site
Small Business Taxes and Management (provides misc. news and updates to tax laws) TaxWeb (consumer-oriented source for federal, state and local tax-related developments)
Small Business Legal Issues Advice: Business Town
Small Business Taxes Advice: Business Town
National Association for the Self Employed
National Association of Tax Practitioners
What Is The Self Employment Tax?
Filing For An Employer Identification Number
For the Category of Taxation (For-Profit):
Related Library Topics
Recommended Books
General Information
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Also See
Financial Management (For-Profit) -- Recommended Books
