Depending on the state your business is incorporated in, you may be subject to additional compliance requirements. For example, some states require businesses to update their information each year or biennially. Typically these annual or biennial filings are requested for the business to update its registered information with the state, which could include: the name and address of the business, information about its chief executive officer, the organization's board member(s), and the address to which the Secretary of State shall forward copies of any service of process when acting as agent of the corporation.
In addition, some states require corporations to pay operation-specific taxes such as:
- Sales taxes - A percentage of tax on the price of a sale that is collected by the business or customer and remitted to the appropriate government body.
- Excise taxes - Taxes levied on certain goods and services including alcohol, fuel, and tobacco. Excise tax is imposed on the supplier or producer who then includes it in the product price.
- Property taxes - Taxes levied on property the entity owns. This could include land, buildings, or industrial real property.
- Employment taxes - Federal income, Social Security, Medicare, and federal and state unemployment taxes paid on behalf of the business for its employees.
When it comes to tax planning for your new business, it's important to fully understand your compliance requirements!
Be sure to fully understand your compliance requirements as a business owner!
Now let’s talk about federal taxes. Similar to how employees pay income taxes from their paychecks throughout the year, we as entrepreneurs are required to do the same, but instead at year-end—or quarterly if the total tax due exceeds $1,000.
However, business owners receive the best tax incentives from the U.S government as a reward for small businesses employing more than 47.3 percent of the U.S. private workforce. These incentives include more tax deductions related to operations and special tax credits. Be sure to speak with a CPA who is knowledgeable in your industry and can advise you on how to pay minimal taxes by taking advantage of all available tax deductions and credits.
T-Mobile does not offer or endorse any tax, legal, financial, or other advice; the opinions, insights, and recommendations of our contributors are their own. Contact professional advisors for advice.