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All the Taxes Your Business Must Pay


As a business owner, you are required to pay several different types of taxes. Here is a list of these taxes.

1. Property Tax

If a business owns real property(real estate), the business must pay property tax to the local taxing authority (usually the city or county) where the property is located.

2. Excise Taxes

Excise taxes are those paid by a business for certain types of consumption (like fuels) and activities (transportation and communications, for example).

3. Gross Receipts Tax

Some states impose a gross receipts tax on businesses instead of a state income tax. In these states, gross receipts (revenues) of the business are taxed. Some states allow deductions for this tax and some types of businesses are exempt in some states.

4. Business Income Taxes

All businesses must pay tax on their income; that is, the revenue of the business less deductible expenses. How that tax is paid depends on the type of legal entity of the business.

5. Sales Tax

Sales Tax is required to be collected by merchants in most states and paid to the state department of revenue.

6. 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.

7. 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. These taxes include social security/medicare, federal/state unemployment, and federal/state worker's compensation taxes.

8. Franchise Taxes

States charge franchise taxes to corporations based on the value of the company.
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