Types of Business Taxes

A business must pay a variety of taxes based on the company's physical location, ownership structure and nature of the business. The following are the six general types of business taxes.

1. Business Income Tax - All businesses except partnerships must file an annual income return. Small businesses, partners in partnerships, and S corporation owners pay taxes through their personal income tax returns. 2. Self-Employment Tax - Self-employment taxes are those paid by sole proprietors and partners for social security and medicare, based on the income of the business.LLC owners also must also pay self-employment tax.

3. Employment Taxes (Payroll Taxes) - Employment taxes are those paid by the owner of a business for several types of taxes based on gross pay of employees. 4. Excise Tax - An excise tax is a tax on use or consumption of certain products. Excise taxes are sometimes included in the price of a product, such as motor fuels, cigarettes, and alcohol.

5. Sales Tax - Sales tax is required to be collected by merchants in most states and paid to the state department of revenue. 6. Property Tax - If a business owns real property the business must pay property tax to the local taxing authority where the property is located. The tax is based on assessed value.

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