Small Business Taxes

Try H&R Block Premium & Business

   

"I have been using this program for my LLC business as well as for my personal 1040. It has served me very well. It flows well, you can navigate back and forward easily and see complete forms if needed."

– HTTLLC

Small Business Taxes

According to the U.S. Census Bureau, there are almost 28 million small businesses in the United States. Over 22 million of the 28 million is made up of self-employed workers with no additional employees. As a result, more than 50 percent of the population works in a small business. One of the major responsibilities that most small businesses don't anticipate is the process of filing small business taxes. Here's what you need to know about those taxes.

Determine your business entity form

Even if you're making and selling jewelry from your home, the U.S. Small Business Administration claims you need to officially establish what kind of business entity you're running. This includes designations such as sole proprietorship, partnership or LLC. Your choice determines your income tax form.

 

On each form, you may encounter four basic kinds of small business taxes: income tax, self-employment tax, taxes for employers, and excise taxes. State taxes are also dependent on your designated business entity. Consider talking to a tax professional in our tax offices to decide which designation is most economically-efficient for you.

 

Apply for a Federal Business Tax ID

Also known as an Employer Identification Number (EIN), a Federal Business Tax ID is used to identify a business entity. You can apply for an EIN through the Internal Revenue Service's official website. Processing takes between one and two weeks. In some states, you'll need to apply for a state EIN in order to pay the state small business tax.

 

When and what to pay

In the tax preparation business, small businesses are usually advised to pay estimated taxes every quarter. Unlike traditional workers, small businesses that identify as self-employed are required to pay a self-employment tax (SE tax). The SE tax covers Social Security and Medicare for self-employed individuals.

 

Our tax professionals at H&R Block have extensive experience working with small business, and are quite familiar with the quarterly filing process. To get a head start, call one of our representatives today.

The help you need, every step of the way, for free

H&R Block Premium & Business

  • Free Audit Support – the only tax software that includes in-person audit representation at no extra cost2
  • Real-time chat with a tax expert online, as much as you need, for free1
  • Maximum Refund - Guaranteed6
   
Download Now

Can We Lend A Hand?

Work with a Pro Online

  • H&R Block Best of Both: The perfect mix of online and Tax Professional help.
  • Block Live: Work remotely with a Tax Professional no matter where you are.
Learn More

Need Live Support? 1-800-HRBLOCK (1-800-472-5625) or Find An Office Find An Office

Offer Details and Disclosures