Mark Glendon

Who Files Taxes For Businesses?

If you own a business in the United States, you likely have to file a tax return for your business taxes each year. In fact, according to the Internal Revenue Service, all types of businesses except for partnerships must file business taxes.

Some of these taxes are filed quarterly, but you may be responsible for an annual return if you represent an organization like a limited-liability corporation (LLC.) This is because an LLC is a pass-through corporation in which the owner files the business' taxes on a personal return each year.

Your Tax Liability Depends on Your Area

Your location can also affect your business taxes. A New York City business based in Brooklyn may see a different tax situation compared to a business based out of Roanoke, Virginia.

In the case of a New York-based business, a Brooklyn business accounting firm or an accounting firm in a nearby borough would be the place to turn for answers. You, as a business owner, would need to check with a Brooklyn business accounting specialist like a CPA to ask about the specific tax liabilities and obligations of your company.

Self-Employed Individuals Still Pay Taxes

If you're self-employed, you will likely still need to file a tax return as well. The complicated thing about this type of employment is that you have no employer to deduct taxes from your earnings. Self-employed individuals, like some other business owners, are generally required to file taxes quarterly. The tax rate for these individuals can change each year, and the state in which you operate can also affect the percentage of your income that is owed in taxes.

This means that self-employed people must do their own accounting and keep up with their own tax liabilities. Failure to report income or pay taxes on all income that is subject to taxation can result in penalties, fines or even criminal prosecution. Because of these responsibilities, it may be worth investing in a partnership with a tax attorney or accounting firm to ensure your entrepreneurial spirit doesn't become a detriment to your success.

Author Resource:-

Mark writes often about tax and estate planning. His articles may include topics like tax planning, estate planning, business accounting or any other tax service to help the people in needs. You can find his thoughts at business accounting blog.