Small Business Taxation

Is there a tax credit for starting a small business? As a small business, you are entitled to claim tax credits that reduce the amount of tax you pay to the government. Businesses of all sizes usually file for tax credits (and their cousins, tax deductions) as part of their annual tax filing process. Read … Read more

To cover your federal taxes, saving 30% of your business income is a solid rule of thumb. According to John Hewitt, founder of Liberty Tax Service, the total amount you should set aside to cover both federal and state taxes should be 30-40% of what you earn. Read more on bench.co It’s crucial for small … Read more

How do I file taxes for a DBA? Sole Proprietorship DBAs report all business related income and losses on Schedule C. Schedule C is filed along with the Form 1040. Expenses can be deducted as well as costs of other business related items and equipment to offset profit made from the business. Read more on … Read more

Can I file LLC taxes myself? To submit and pay taxes as a single-member LLC, you’ll file Schedule C with your personal income tax return. On Schedule C, you’ll report the income and expenses from your business. That amount will then be included as income or loss on your personal tax return Form 1040. Read … Read more

How does a DBA pay taxes? The profits of your DBA will pay two taxes: income tax and 15.3% self-employment tax. Unlike normal wages, taxes are not automatically withheld from your pay. This means taxes are paid quarterly to the government on April 15th, June 15th, September 15th, and January 15th. Read more on www.algtaxsolutions.com … Read more

Can LLC owners be on payroll? Generally, an LLC’s owners cannot be considered employees of their company nor can they receive compensation in the form of wages and salaries. * Instead, a single-member LLC’s owner is treated as a sole proprietor for tax purposes, and owners of a multi-member LLC are treated as partners in … Read more

What income is considered small business? SBA’s Table of Size Standards provides definitions for North American Industry Classification System (NAICS) codes, that vary widely by industry, revenue and employment. It defines small business by firm revenue (ranging from $1 million to over $40 million) and by employment (from 100 to over 1,500 employees). Read more … Read more

How do I register my payroll taxes in DC? If you are a new business, register online with the DC Office of Tax and Revenue. If you already have a DC Withholding Account Number, you can look this up online or on on correspondence from the DC Office of Tax and Revenue. If you’re unsure, … Read more

How do I get a tax ID number for a small business? Apply for an EIN with the IRS assistance tool. It will guide you through questions and ask for your name, social security number, address, and your “”doing business as”” (DBA) name. Your nine-digit federal tax ID becomes available immediately upon verification. Read more … Read more

Do two owners of a business have to file an EIN number? Outside of a sole proprietorship, all business types need to get registered with the state and local governments. As an official separate business, the one owned by you as one of two owners will need to obtain a federal Employee Identification number. Read … Read more