Small Business Startup Tips - Tax Obligations

Corporations, partnerships, limited liability companies, businesses with employees, businesses with a Koegh Plan, and businesses that file excise, fiduciary, or alcohol, tobacco, and firearms tax returns require and Employer Identification Number (EIN). You can apply online at the IRS: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/How-to-Apply-for-an-EIN.

The tax obligations of your business depend on the legal structure you have chosen. The four general types of business taxes are the Income Tax, the Self-employment Tax, Employment Taxes, and Excise Taxes. All businesses except partnerships are required to file an annual income tax return. The Self-employment tax covers social security and Medicare for people who work for themselves if you make more than $400 a year or have a church employee income of $108.28 or more. Employment taxes included social security, Medicare, federal income tax withholding, and federal unemployment tax. Excise taxes are paid on specific goods (like gasoline) and are usually included in the price of the product.