Business Taxes

As a business owner, you will be responsible for paying a variety of local, regional and national taxes. These can include income tax, much like employees pay on their income, plus additional payroll taxes, business licences and permits, sales and use taxes, and self-employment taxes.

The taxes you pay can depend on your line of business, the type of business entity you create, the tax designation you choose and where your business is based. Taxes will differ based on the country and region you are in and can be complicated, so it is wise to consult an accountant and business lawyer to ensure that you are adhering to all relevant laws.

Local and regional taxes
Your tax obligations and filing requirements can vary widely depending on where your business is based and operated.

Regional and local taxes can include:

• Income tax: You may need to pay local income taxes on the money you earn or your business earns.
• Unemployment taxes: This money funds the local programmes that help temporarily unemployed workers.
• Sales tax: Local and regional governments might impose a sales tax on the products you sell. You'll need to record what you sell, collect the tax from customers and pay the money to your local and regional governments.
• Real estate tax: A local tax that you might have to pay if your business owns any land or buildings.
• Business personal property tax: A local tax you have to pay on business assets, such as equipment and furniture.

Consult an accountant or business tax lawyer who is familiar with your industry and area. They can help you understand your tax obligations on the local and regional levels and can recommend ways to minimise your taxes.