What are capital gains taxes and how do they affect my business?
• What are excise taxes and how do they affect my business? • Why do some businesses have different tax years ? • What kind of payroll taxes am I liable for as an employer? • Can I avoid payroll taxes by hiring independent contractors rather than employees? • What are the tax consequences of buying or selling a business? Q: How are businesses taxed? A: When people think of taxes paid by businesses, income taxes are probably what come to mind first. But income taxes are only one of many different kinds of taxes assessed against businesses by federal, state and local governments. Oftentimes, a tax on a business is called something else like “license fee” or an “assessment,” but any payment to the government is essentially a tax. In the United States, all businesses are subject to federal taxation on their income. But they”re also subject to taxation by state and local governments, each one of which has different rules and regulations: • At the local level, most businesses are required to
