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When operating a small business...

When operating a small business what amount does the government take out for taxes? Does it vary from state to state?

Submitted: 5 years ago.Category: Tax
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Answered in 17 minutes by:
9/4/2012
Tax Professional: Robin D., Senior Tax Advisor 4 replied 5 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,887
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello and thank you for using Just Answer,

The form of business you operate determines what taxes you must pay and how you pay them. The following are the four general types of business taxes.

Your personal income tax and how you report and pay will be dependent on your actual business entity. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation.

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.

You generally must withhold federal income tax from your employees' wages. You withhold part of Social Security and Medicare taxes from your employees' wages and you pay a matching amount yourself. You report and pay FUTA tax separately from Federal Income tax, and Social Security and Medicare taxes. You pay FUTA tax only from your own funds. The states may all have a different rate for SUTA (state unemployment) this would be one of the only areas where the state would matter for small business.

This is basic info on business taxes if you would like to be more specific in your question I would be happy to address that tax more fully.

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