SMALL BUSINESS AND TAXES PAID

TAXES ARE A PART OF A BUSINESS

This is already a given. It can be annoying, but businesses have to pay them in order to continue operating. There are a number of taxes that businesses might pay. Some businesses pay more than others. Here are some taxes which businesses might pay at any given time.

One of the taxes that most businesses would pay is the income tax. Businesses are created precisely for income, and a portion of that income goes to taxes. The type of income tax depends on the type of business is being run. For small business owners and single proprietorships, that might mean personal income tax returns being paid.

There is also the property tax. Most businesses have an office. That means then that businesses, in general, pay some form of property tax. This tax is calculated on the assessed value of the property, which is then paid accordingly.

For the self-employed and small business owners, there is also the self-employment tax. This tax comes in the form of Social Security and Medicare. This is not so much of a tax as it is a deduction which small business owners can benefit from later on.

Sales tax isn’t something that businesses are collected directly. Rather, goods and services have an added tax imposed on them as a means of payment. Consumers mostly pay, in a way, for this tax that is imposed on goods and services.

For businesses that have employees, there’s the payroll tax. Just like the self-employment tax, the payroll tax is more of an additional benefit to employees. Business owners deduct Social Security and Medicare from employee wages. These would, later on, become benefits for people who might want to take advantage of them.

Aside from these taxes, there are also state and local taxes to contend with. These might vary from one place to another. Business owners should check what these taxes are before starting a business, and regularly check up on them so as to know what changes or additions are made.

These are some of the taxes that businesses might pay. Some of them might not be applicable to certain types of businesses, but certainly, most of them would be encountered by many businesses. Knowing what taxes to pay can help business owners. These taxes are collected by the government in order to improve its own services, which in turn help businesses in the long run.

Paying taxes can be a pain, and most people would rather not if they have a choice in it. However, taxes benefit people. It helps build communities, thus they are given back to them indirectly through improved services and infrastructure. Businesses gladly pay taxes when they see that there are improvements being made. In the end, everyone benefits when taxes are paid.

With that in mind, taxes could still be a pain, though there are benefits as well. Taxes that are paid would mean that government can run more smoothly and give better service. This is the advantage of businesses paying taxes.