Business Income Taxation for 2009, 2010
July 27, 2010 by Hanna08
When starting a business you must decide what form of business entity to use. Your business type (sole proprietorship, partnership, corporations, s-corporation, and LLC) determines which income tax return form you have to file.
The federal government charges four basic types of business taxes: income tax, self-employment tax, taxes for employers, and excise taxes which are taxes paid on purchases for certain goods. These taxes are often included in the price.
You will be required to file your taxes in whatever way is most appropriate for your business. The following business entities may be liable for the different taxes.
Sole Proprietorship: Someone who owns an unincorporated business by himself or herself.
Partnership: is the relationship between two or more people who carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.
Individual partners may also be liable for the following taxes:
C -Corporations: Where prospective shareholders exchange money, property, or both, for the corporation’s capital stock. A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income.
S- Corporations: Corporations that choose to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates.
Limited Liability Company (LLC): is a business structure allowed by state statute. LLCs are popular, because similar to a corporation owners have limited personal liability for the debts and actions of the LLC. The federal government does not recognize an LLC as a classification for federal tax purposes. An LLC business entity must file as a corporation, partnership or sole proprietorship tax return.
For more information regarding business taxes and what you may be liable for, visit TurboTax Online today.
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Someone decided who when to hire more people. And that is the big rich guys. They decide where the money goes.
I would be OK with the rich people paying more in taxes IF they lowered taxes on businesses. Businesses treat taxes the same way they treat any other unavoidable expence.
What happened when the cost of gas skyrocketted? Big corperations were paying more in transporting goods & other gas-related expenses. So they either hiked up the costs of goods or cut payroll. Why do liberals think anything else would happen if the added expence is taxation?
Any added tax (or added fees or other added expenses) will end up hurting the little guy most of all.