You probably know that starting a small business is a lot of work. It’s satisfying to watch one of your ideas come to fruition and make a profit, but there are countless factors to consider before this happens.
Understanding your tax responsibilities is one of these considerations and the world of tax laws can be complicated, especially for small business owners. You might have a basic understanding of what taxes you’ll need to expect to pay for your company, but there are actually quite a few taxes that small business owners pay.
List Of Small Business Taxes
All types of companies are responsible for paying a variety of taxes, but as a small business owner it’s important that you know exactly which taxes you will need to pay so you can plan, especially if you are doing things mostly on your own.
Some of the taxes for small business owners are:
- Income tax
- Self-employment taxes – this covers social security and Medicare
- Payroll taxes for employees/Employer tax
- Estimate tax
- Property taxes for buildings or land owned
These can vary based on the type of business entity you establish.
A few additional taxes you may find your business responsible for include:
- Unemployment taxes
- Workers’ compensation taxes
- Capital gains taxes
- Dividend taxes
According to the Small Business Administration, small businesses are taxed at a rate of 19.8 percent in taxes per year and most anticipate setting aside 30 to 40 percent of income to pay federal, state and local taxes.
As you can see, there are several taxes your company is responsible for. You may want to consult with a tax lawyer or other professional to ensure your business is following all the proper guidelines. A professional can also give you more information about what these taxes are for and how they work.