There are many different taxes a business must pay and these must be figured in your operating expenses. Keep good records to help determine your profit and what you will need to pay.
Choose your business structure:
Your next stop should be to apply for an Employer Identification Number.
Self-employed persons, operating as a sole proprietor are required to make estimated tax payments during the year. You pay only if you expect to owe tax on income of $1,000 or more. You have to make quarterly payments on April 15, June 15, Sept. 15 and Jan. 15. You pay tax only when you receive income. For example, if you received no income until May 10, you would pay estimated tax in June. The self-employment tax rate for 2004 is 15.3% of the first $87,900 of income and 2.9% of everything over $87,900. Self-employment taxes are reported on Schedule SE, which a sole proprietor submits each year with a 1040 income tax return and Schedule C.
If you have employees, you need to pay payroll taxes and if If you are operating as a corporation, you need to pay payroll taxes for yourself.
Almost all states have a sales tax you must charge and collect collect. To find out about you state, click here .
You are also required to pay property taxes, taxes on you equipment and inventory, state income taxes, business license fees, and fees to maintain your corporate status.
Business Tax Publications
Tax Information for Federal, State, & Local Governments
Federal, State and Local Governments facilitates cooperation through partnerships with federal, state, and local government agencies for the purpose of meeting their federal tax responsibilities, with a focus on customer service and fairness to all.
Government Liaisons foster partnerships with federal, state, and local governments to facilitate the exchange of data and the improvement of tax administration.
Tax Information for Indian Tribal Governments
Indian Tribal Governments (ITG) uses partnership opportunities with Indian tribal governments, tribal associations and other federal agencies to respectfully and cooperatively meet the needs of both governments.
Tax Guide For small Businesses (Online Publication)
Accounting Methods and Periods (Online Publication)
Tax Hints Publication
Small Business Tax Workshop Online
Checklist for Starting a Small Business
I-9 Form: All U.S. employers are responsible for completion and retention of Form I-9 for each individual they hire for employment in the United States. This includes citizens and noncitizens. On the form, the employer must verify the employment eligibility and identity documents presented by the employee and record the document information on the Form I-9. Acceptable documents are listed on the back of the form, and detailed below under "Special Instructions."
The form must be kept by the employer either for three years after the date of hire or for one year after employment is terminated, whichever is later. The form must be available for inspection by the authorized U.S. Government officials (i.e., ICE, Department of Labor).