When dealing with taxes, most people in Atlanta and elsewhere feel overwhelmed. Even if they do not have tax situations that are considered overly complicated, it can still be difficult to know how to file, what information to provide, what to pay and when to pay. When individuals also run a business, they have different and more tax implications to consider than someone who is just an employee.
Business taxes serve various purposes, and not every business will face the same type of taxes. What a business owner must hand over to the IRS can depend on the type of service or product provided, whether the company has employees, where the business is located, and more. As a result, if a business owner does not ensure that all types of taxes are addressed, a problematic scenario could arise.
Some of the most common types of taxes that business owners may face include:
- Federal income tax
- State income tax
- Payroll tax
- Sales tax
- Self-employment tax
- Corporate income tax
- Property tax
- Dividend tax for corporate shareholders
This list does not mean that every business owner will have to contend with all of these tax implications, and there may be some not listed here that could apply. As a result, it is wise for Atlanta business owners to understand what they may be obligated to pay for their various business taxes. Unfortunately, if a business owner forgets to cover an important tax area, it is possible for an audit to take place. If the IRS believes that a company did not properly file or pay its taxes, civil or even criminal penalties could apply.