Introduction
For almost every business man in the world, with the exceptions of few, paying taxes is nothing but a nuisance. Probably because today we have so many different kinds of taxes that almost half the profit is washed up in paying them. But it is an obligation that must be complied with. Though a tax on a small business as compared to a large one would be less, but life isn't going to be easy for the owners of small businesses either. If you intend to start a small business, you must first get all the information regarding taxes so that you won't have problems in the future.
History
In order to find what taxes small business owners are supposed to pay, lets first understand what a small business is. Basically it is a generalized term applied on any business which has low investment, few employees, low employment cost and few capital expenses, however the revenue may vary. A small business can be of anything, from clothes, to food, to shoes, supply parts etc. It can involve office work or online work, or it may be run by a single person or a set of partners. Generally in a small business the employee rate ranges from ten to hundred and the area of work occupies small space. Though such a business may not have a lot employee expenses, tax on any kind of small business is applied any way.
Features
The amount of taxes you are required to pay by being an owner of a small business does vary depending on the type of business you have. There are certain taxes that you are supposed to pay being a business man. General tax on your small business is the income tax. It means that a portion of yearly or monthly income in deducted as tax. Income tax is actually applied on citizens even. Next another tax on your business that you are supposed to pay is the federal tax, after that you have employment taxes and self-employment taxes. The last ones are for those who work for their own business; an employment tax is a must on all kinds of employers of any business. If your business involves purchasing of property such as land, building, cars, etc. A tax on your purchased property will also be applied. If you have a small online business, then you won't have to pay capital taxes unless you have purchased property under the account of your business money.
Tips and comments
If you are an owner of a small business, and you are new to the business world, then it’s better if you drop the idea of handling taxes by yourself. A business whether small or large does involve the hassle of tax payments and having all kinds of costs and profit problems, makes paying taxes unlikely to cross your mind. Hiring an accountant or a manager to deal with the accounts will help you a lot. Forgetting the tax payment dates is the biggest problem business owner’s face so hiring a person who would be responsible for tax filing will be a definite help.
