The form of business you operate determines what taxes you must pay and how you pay them. The following are the four general types of federal business taxes.
Income Tax / Estimated Taxes / Self-Employment Tax / Employment Taxes
All businesses except partnerships must file an annual income tax return. Partnerships file an information return. The form you use depends on how your business is organized. LLC’s may file a corporate income tax return or, if it has two or more members, it may file a partnership return. More often than not, a LLC with two or more members will file a partnership return. And, a single member LLC could file using Form 1040 Schedule C if not electing to file as a corporation.
The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay. If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax using quarterly coupons.
Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.
When you have employees, you as the employer have certain employment tax responsibilities that you must pay and forms you must file. Employment taxes include the following:
Various states have very similar tax returns that must be filed, except for the SE Tax, and many conform to federal tax rules. In addition, certain businesses may have to submit sales tax and other types of returns. There may also be local returns that need to be filed throughout the year.
We help our clients with meeting any or all of their tax compliance needs if they so desire.
Some clients, with foreign investors, are required to withhold and remit taxes on gross revenue, profits or payments made. These rules are fairly complex and we help our clients navigate through them based upon their specific needs and circumstances.
Our business clients span from retailers to wholesale distributors, various types of contractors and consultants, pass-through returns for various types of investment companies, as well as, real estate developers and property managers. We have a broad understanding of many types of businesses. Call us to find out if we can help you too!