Tax Implications of Running a Business

Disclaimer

This post does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Why you should know about taxes

When the business is perfectly profitable, a corporation could hire a whole team of accountants to manage taxes. However, it may take a while to achieve that. In the early days of the business, having a basic understanding of tax implications will help -

• Make sure the business always compliant with federal and state regulations.
• Set the right expectation for the amount of work that needs to be done for taxes.
• Understand the accountant’s job and what you are charged for.
• Most importantly, help make better business decisions.

Below are the common types of taxes in US businesses.

Federal Corporate Tax

Federal corporate income tax is levied by the federal government on business profits.