Business Taxes

Business taxes cover the payments and paperwork that come with earning money through a company, side gig, or nonprofit mission. Depending on how a business is structured and how it operates, obligations can include income tax, self-employment tax, payroll withholding, and sometimes tariffs on imported goods. Getting the structure and the paperwork right from the start makes everything that follows simpler.

Getting set up. Most businesses need a federal identifier before they can hire, open bank accounts, or file returns, and the process for Steps for Obtaining Your EIN is one of the first things a new owner should understand. Organizations pursuing charitable or educational purposes face a separate track, covered in Securing Tax-Exempt Status for Nonprofits.

Independent work and self-employment. Anyone freelancing, contracting, or running a sole proprietorship takes on tax duties that traditional employees don’t, from estimated payments to self-employment tax. Freelancer Tax Implications and Obligations and Reporting Self-Employment Income walk through those responsibilities, while Home Office Tax Deductions and Requirements explains a deduction many home-based workers can claim.

Lowering the bill and understanding related costs. Legitimate deductions can meaningfully reduce what a small business owes, a subject explored in How to Cut Your Small Business Tax Bill. Businesses that import goods also encounter tariffs, which function differently from ordinary taxes; What’s the Difference Between a Tariff and a Tax? and Are Tariffs Taxable? A Guide for U.S. Businesses and Consumers sort out how the two interact.