Primary Types of Business Taxes

October 22, 2023
Published by Gonzales Group CPA

Running your own business is often satisfying, but there are parts that can be confusing or a distraction from trying to focus on your business. Accounting and taxes are areas where many business owners would do better to use a reputable CPA in San Antonio TX, like the ones at Gonzales Group. We can take care of the various kinds of business taxes for you so that you can put your time and energy into growing your business.

Still, it’s important to know the taxes you’ll be liable for, because you need to make sure the money is available to pay your taxes on time, while still having money to put into your business. Income tax will be more familiar to you. It’s the taxes you pay on your profit after all business expenses are paid and qualifying deductions are made.

Next up are the capital gains taxes. When you sell an asset and make a profit off of it by selling it for more than you originally paid, you need to pay capital gains tax. You’re taxed at different rates depending on how long you owned the asset before sale. There’s a maximum of 20% if you owned the asset for longer than one year, but if you owned it for less than a year, you could pay a tax rate up to 37%.

For self-employment taxes, you are taxed on your profits after all business expenses are paid. However, you can’t use standard or itemized deductions to reduce your taxes, in part because the revenue gained from them go toward funding Medicare and Social Security.

Similar to self-employment taxes are payroll taxes. These are paid on wages and salaries of your employees. Payroll taxes are used to fund Social Security and Medicare. State unemployment taxes are also considered as payroll taxes and are paid by the employer.

Finally, there are sales and excise taxes. Everyone is familiar with sales taxes, which are a percentage of the entire price of goods and services. Rates vary by state, but typically, businesses factor in the sales tax by making it part of the total cost for the customer. Same goes for excise taxes, which are only for very specific items and services, such as cigarette sales.

Working with a CPA in San Antonio TX will better help you understand which taxes you are liable for and what forms and other factors need to be included when filing your taxes. To avoid any confusion, contact us today to help you get a better understanding and more assistance in ensuring your taxes are paid correctly.

Categorised in: Business Tips, Common Mistakes Small Businesses Make, Primary Types of Business Taxes, Tax Info, Top 3 Reasons Small Businesses Should Hire a CPA

This post was written by Gonzales Group CPA