What Kinds Of Taxes Should I Expect in Connection With a Corporation?

All small business owners need to be aware of tax basics and the various tax filings they are required to make. Regular corporations (or C corporations) must pay tax on corporate income, and shareholders

The kinds of taxes you should expect in connection with your corporation may include:

• Income tax. All businesses except partnerships must file an annual income tax return with the IRS. A corporation must deposit the taxes it owes, including estimated tax payments and any balance due shown on its tax return;
• Employment tax. If your business has employees, it must pay employment taxes. These taxes include: federal income tax withholding; Social Security and Medicare taxes; and Federal unemployment tax;

• Excise taxes. If you manufacture or sell certain products; operate certain types of businesses; or use various types of equipment, facilities, or products, you may owe excise tax. Most small business do not fall into the category of owing these taxes
• Sales taxes. If your business sells retail products, and your state imposes sales tax on those goods, your business is usually responsible for collecting and paying that tax. A seller of products will be responsible for (1) charging and collecting the proper tax amount from the customer; (2) reporting that tax amount to the appropriate state or locality in a timely manner; (3) paying that tax amount to the appropriate state or locality in a timely manner; and (4) obtaining sales permits as needed.