Small businesses may be subject to federal income tax, state income tax, self-employment tax, sales tax, and, if applicable, local taxes

The deadlines vary. Federal income taxes are generally due by April 15th, but some businesses may have different deadlines based on their structure. State and local tax deadlines also vary

The business structure (sole proprietorship, partnership, LLC, corporation, etc.) affects tax liability. Consult with a tax professional to determine the most advantageous structure for your business

Yes, you can deduct ordinary and necessary business expenses to reduce taxable income. Common deductions include office rent, supplies, utilities, and employee wages

In many states, businesses are required to collect and remit sales tax on applicable goods and services. The rules and rates vary, so it's essential to understand the requirements in your specific location

Self-employment tax covers Social Security and Medicare taxes for individuals who work for themselves. If your net earnings are $400 or more, you're generally required to pay self-employment tax

Small businesses typically file an annual income tax return. The specific forms depend on your business structure. Many small businesses file Schedule C with their personal tax returns

Yes, there are tax credits available for hiring certain categories of employees, such as veterans or individuals from specific target groups. The Work Opportunity Tax Credit (WOTC) is an example

If you expect to owe $1,000 or more in taxes when you file your annual return, the IRS generally requires you to make estimated quarterly tax payments throughout the year

If you can't pay your taxes in full by the due date, it's essential to file your return on time and pay as much as you can to avoid penalties and interest. You may also explore installment plans with the IRS

A C Corporation (C Corp) is a legal structure that separates the business from its owners. It is a distinct taxable entity, meaning the corporation itself is responsible for its taxes

C Corporations are subject to corporate income tax on their profits. If the corporation distributes dividends to shareholders, those dividends are also taxed at the individual level

C Corps offer limited liability protection to owners, the ability to raise capital through the sale of stock, and potential tax advantages, such as deductible business expenses

Yes, small businesses can choose C Corp status regardless of size. However, the decision is often influenced by factors like growth plans, financing needs, and the desire for a separate legal entity

Some tax incentives may apply to C Corporations, such as certain deductions, credits, and the ability to retain earnings within the company for future growth

C Corps must file an annual corporate tax return (Form 1120) with the IRS. Compliance also includes maintaining proper corporate records, holding regular meetings, and adhering to state regulations

Yes, a C Corp can elect S Corporation (S Corp) status if it meets certain eligibility criteria. This election allows the business to pass income, losses, and credits through to shareholders for tax purposes

C Corporations are subject to a flat corporate tax rate, which may vary. It's crucial to check the current tax rates, as they can be subject to legislative changes