One of the first things a budding entrepreneur must do is determine what federal taxes will need to be paid by his or her new business. Paying federal taxes for a business is almost never as simple as filling out the proper forms and making sure the check is post-marked by the April 15 tax deadline. There are many factors that determine what type of federal income taxes a business must pay, as well as when the government’s share is due.

A Tampa CPA from Reliance Consulting, LLC, can help a new business owner determine how (and how much) to pay the federal government in taxes. In general, the structure of the business will be the primary determining factor for tax planning. For example, the IRS says that all businesses except a partnership must file an annual income tax return. Partnerships are required to file what’s known as an information return. This is only one example of the complexity of federal taxes for businesses. Here is a brief description of the types of taxes that a new business may be responsible for paying each year:

• Income tax – This is a “pay as you go” tax, with payment deadlines and amounts determined by how the business is organized.
• Self-employment tax – This is the Social Security and Medicare tax for individuals who work for themselves.
• Employment taxes – Employers are responsible for a portion of the Social Security, Medicare, and federal unemployment taxes for each employee.
• Excise tax – This is a “hidden” tax imposed on purchases of quantities of particular items needed to do business, such as fuel; in essence, and excise tax is anything not considered income tax, sales tax, or property tax.

Of course, these are only the federal taxes that every business owner should be aware of. Each state has its own set of tax-related information to familiarize yourself with, including sales tax, property tax, and more. For the best advice about how to navigate the complex world of business taxes, contact Reliance Consulting. We have been a trusted source for business advice in the Tampa Bay area since 1984.