The form of business you operate determines what taxes you must pay and how you pay them. The following are the five general types of business taxes.
Income Tax
All businesses must file an annual income tax return. The form you use depends on how your business is organized. Wondering which returns you must file? Refer to the business structure list based on the business entity established to find out.
The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay. If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. If you are not required to make estimated tax payments, you may pay any tax due when you file your return. For additional information refer to Publication 583.
Estimated tax
Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year.
Self-Employment Tax
Self-employment tax (SE tax) is a Social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.
Generally, you must pay self employment tax and file Schedule SE (self-employment) with Form 1040.
If your net earnings from self-employment were $400 or more
Note: There are special rules and exceptions for aliens, fishing crew members, notary public, state or local government employees, foreign government or international organization employees, etc.
Employment Taxes
When you have employees, you as the employer have certain employment tax responsibilities that you must pay and forms you must file. Employment taxes include the following:
Social security and Medicare taxes
Federal income tax withholding
Federal unemployment (FUTA) tax
Excise Tax
This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following.
Manufacture or sell certain products
Operate certain kinds of businesses
Use various kinds of equipment, facilities, or products
Receive payment for certain services
Form 720 - The federal excise taxes consist of several broad categories of taxes, including the following:
Environmental taxes
Communications and air transportation taxes
Fuel taxes
Tax on the first retail sale of heavy trucks, trailers, and tractors
Manufacturers taxes on the sale or use of a variety of different articles
Form 2290 - There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more.
Form 730 - If you are in the business of accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering.
Form 11-C - Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering.
Excise tax has several general excise tax programs. One of the major components of the excise program is motor fuel.