{"id":24114,"date":"2026-04-21T11:04:42","date_gmt":"2026-04-21T11:04:42","guid":{"rendered":"https:\/\/incredipros.com\/?p=24114"},"modified":"2026-04-21T11:04:43","modified_gmt":"2026-04-21T11:04:43","slug":"a-guide-to-small-business-taxes","status":"publish","type":"post","link":"https:\/\/incredipros.com\/?p=24114","title":{"rendered":"A Guide to Small-Business Taxes"},"content":{"rendered":"
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Did you ever wonder why taxes are so often mentioned in the same sentence as death? They\u2019re both unpleasant, and you can\u2019t, in the end, avoid either of them. But that doesn\u2019t have to get you down! Your business is killing it and your customers are being served. You just need to keep Uncle Sam and the KGB\u2014oops . . . the IRS\u2014off your back. And to do that, you need to know about taxes on small businesses.\n <\/p>\n

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Get expert money advice to reach your money goals faster!<\/p>\n<\/p><\/div>\n

Before we get started, let\u2019s define the term\u00a0business tax.\u00a0<\/em>A business tax is just what it sounds like: a tax on business income. Pretty straightforward so far, right? Now, let\u2019s talk about the\u00a0types\u00a0<\/em>of business taxes that apply to small-business owners.\n <\/p>\n

Types of Small-Business Taxes<\/h2>\n

How you set up your business\u2014as a C corporation, sole proprietorship, etc.\u2014will determine which taxes you pay and how you pay them.1<\/sup>\u00a0There are a bunch of small-business taxes to know about, and it can feel pretty complicated (especially with all the IRS lingo). So, to save you time and stress, let\u2019s walk through it all together in plain English.\n <\/p>\n

1. Income Taxes<\/h3>\n

All businesses must file an annual income tax return. C corporations pay income tax at the corporate rate, while all other businesses are considered\u00a0pass-through<\/em>\u00a0entities and are taxed at the individual rate (we\u2019ll dig in on these in a minute).\n <\/p>\n

2. Estimated Taxes<\/h3>\n

Freelancers, independent contractors and small-business owners who expect to owe at least $1,000 in taxes need to\u00a0estimate\u00a0and pay\u00a0quarterly taxes. If you don\u2019t pay them, or don\u2019t pay enough, you can be hit with penalties and interest and open yourself up to all kinds of unpleasantness.<\/em>\u00a0So, you need to be sure that you know the due dates and the payment period for the estimated payments.2<\/sup>\n <\/p>\n\n\n\n\n\n\n\n\n
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When You Get Paid<\/strong>\n <\/p>\n<\/td>\n

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Tax Due Date<\/strong>\n <\/p>\n<\/td>\n<\/tr>\n<\/thead>\n

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Jan. 1\u2013March 31\n <\/p>\n<\/td>\n

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April 15\n <\/p>\n<\/td>\n<\/tr>\n

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April 1\u2013May 31\n <\/p>\n<\/td>\n

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June 15\n <\/p>\n<\/td>\n<\/tr>\n

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June 1\u2013Aug. 31\n <\/p>\n<\/td>\n

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September 15\n <\/p>\n<\/td>\n<\/tr>\n

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Sept. 1\u2013Dec. 31\n <\/p>\n<\/td>\n

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January 15 of the following year\n <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

We recommend setting aside\u00a025\u201330% of your income\u00a0to pay these taxes. This way, you\u2019re not hit with a massive, unexpected\u2014and let\u2019s just say it, annoying\u2014bill at the end of the tax year.\n <\/p>\n

Don\u2019t learn this lesson the hard way. Plan now!\n <\/p>\n

3. Self-Employment Taxes<\/h3>\n

Working for yourself is all fun and games until Uncle Sam barges into your home office. That\u2019s right, the IRS has created a tax\u00a0just for you<\/em>\u2014aren\u2019t you special? Luckily, if you plan for it, you\u2019ll be okay.\n <\/p>\n

People who are self-employed have to pay self-employment taxes, which cover Social Security and Medicare taxes. The self-employment tax rate is 15.3%, which consists of two parts: 12.4% for Social Security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).3<\/sup>\n <\/p>\n

You must pay self-employment taxes if:\n <\/p>\n