Small Business Tax Basics

Sales Taxes
Most services remain exempt from sales tax, but most products are taxable (typical exceptions are food and drugs). If a business sells a product

or service that is subject to sales tax, the business must register with the state's tax department. Then taxable and nontaxable sales must be tracked and included on the company's sales tax return.

Important Tax Deadlines for Businesses
April 15 isn't the only important tax date. The following deadlines are also important to keep in mind:

• Annual returns. Annual returns are due April 15 for unincorporated companies.
• Estimated taxes. Estimated taxes are due four times a year: April 15, June 15, September 15, and January 15.
• Sales taxes. Sales taxes are due quarterly or monthly, depending on the rules in your state.
• Employee taxes. Depending on the size of your payroll, employee taxes are due weekly, monthly, or quarterly.
• Corporations. The due date for corporations with a calendar tax year is March 15. If a corporation follows a fiscal year, taxes are due two-and-a-half months after the end of the fiscal year.