Business tax can be a complex process as there may be varied sources of income and multiple types of expenditure for each of these the tax rates and taxation regulations may be different. Avant Tax, the best business services in Texas and the leading financial counselor and tax service provider offers hassle-free taxation solutions to individuals and businesses.
Proper tax planning is essential to save on your taxes and tax planning helps you to decide on time and mode of conducting business processes and executing major business actions and transactions so that you can reduce or eliminate heavy taxes. Contact Avant Tax, the best business services in Texas to avail the best business tax solutions for your business.
As per the federal law, business firms should file income tax return annually. Partnership firms are exempted as they need to file information return instead of income tax return. There are multiple forms to use according to the organization mode of your business. Each business entity has different types of tax returns. The federal income tax is a pay-as-you-go tax. Income tax returns are based on the income or money you earned or received during a financial year. Employers withheld income tax from employees pay. If your tax is above what is withheld by the employer, then employees need to pay an estimated tax. If estimated tax is not applicable to you then all tax due is to be paid by the employee. For additional information refer to Publication 583.
Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. For additional information, refer to Estimated Taxes.
Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.
Generally, you must pay SE tax and file Schedule SE (Form 1040) if either of the following applies.
Note: There are special rules and exceptions for aliens, fishing crew members, notary public, state or local government employees, foreign government or international organization employees, etc. For additional information, refer to Self-Employment Tax.
When you have employees, you as the employer have certain employment tax responsibilities that you must pay and forms you must file. Employment taxes include the following:
This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following.
Form 2290 – There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Report the tax on Form 2290. For additional information, see the instructions for Form 2290.
Form 730 – If you are in the business of accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering. Use Form 730, to figure the tax on the wagers you receive. Form 11-C – Use Form 11-C, Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering.
Excise tax has several general excise tax programs. One of the major components of the excise program is motor fuel. For additional information, refer to Excise Taxes.
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