Online Incorporation MaxBlog

Looking for some simple explanation of federal small business taxes? Click over to the online incorporation knowledge center at MaxFilings.com for an overview of the next most certain thing in life next to death.

Federal taxes a small business may be subject to depend a lot on its structure (i.e. C corporation, S corporation, LLC, etc.) along with many other factors.

Four different types of taxes a small business could be exposed to include

1. Income taxes – required for all individuals and businesses (except partnerships, who file an informational return).
2. Self-Employment taxes – primarily affects the self-employed
3. Employment taxes – small businesses with employees
4. Excise taxes – required depending on various conditions, usually for businesses who manufacture certain things or are in a certain industry.

Read Four Types of Federal Taxes Small Businesses Should Know About – And Where to Find Information from the IRS today in the business incorporation knowledge center at MaxFilings.com for more insight and links to further information about this complex subject.

A bill to allow entrepreneurs a one-time income tax deferment was introduced in the House of Representatives by Representative Patrick Kennedy (D-R.I.) on May 19^th.

Formally known as the Generating Reinvestment Opportunities with America’s Small Businesses Act of 2009 or H.R. 2490, the GROW Act would allow entrepreneurs to defer their current income taxes for two years so they can invest more in their small businesses.

Rep. Kennedy characterized his proposal as “interest-free, short-term loans” that “would strengthen small businesses at a minimal cost to the federal government.”

The GROW Act allows deferred taxes to go unpaid for two years. Repayment would be spread out in equal installments for four years thereafter.

Read more about the bill at this Daily Dose blog post and on Rep. Kennedy’s website.

And check back with the online incorporation blog Incorporation-e.com again for updates on the progression of this bill through Congress.

When forming a corporation, you want to have all the knowledge you can to make the right decisions…but finding the right ones that will be helpful can be very time consuming.

An article in Entrepreneur Magazine’s April, 2009 issues – Best Resources for Startups – lists 4 resources every aspiring entrepreneur, and even those who are well established, should be familiar with.

1. SCORE – A nonprofit organization with over 400 chapters that provides free mentoring online and in-person. Consists of nearly 12,000 working and retired entrepreneurs and business people.

2. Small Business Development Centers – Located across the country and usually connected to a university, these organizations provide consulting for just about any facet of managing a small business.

3. Small Business Administration – Federal government agency that provides an array tools to help new and aspiring entrepreneurs succeed. It’s recommended you start with their Start-up Assessment Tool to help find the right resources.

4. U.S. Chamber of Commerce Small Business Center – An arm of the U.S. Chamber of Commerce that provides comprehensive assistance for startups through web-based tools and resources.

These are just a few of the many resources out there…but, they’re most likely the most reliable for accuracy and impartiality.

In addition to these, online incorporation service MaxFilings.com has an expansive online incorporation knowledge center that has many helpful articles that make sense of incorporating a business– check it out and then use MaxFilings’ online system and form your corporation in just minutes.

Last Friday, President Obama extolled that there are “glimmers of hope” in the U.S. economy for recovery, which has been experiencing the deepest recession in a generation.

Dennis Romero over at the Entrepreneur.com Daily Dose blog has a great summary of the president’s remarks at the White House.

Since March, the Small Business Administration’s popular small business loan program has expanded by 20% when the administration announced stronger loan guarantees for credit administered through the SBA.

The President commented to reporters at the White House, “We feel very good about the progress that we’re making in unlocking lending in some particular markets, for example the small business area.”

He went on to say regarding the 20% increase in small business lending, “And what that means is that small businesses are starting to get money that allows them to keep their doors open, make payroll, and that is going to contribute to our overall economic growth, as well as help make sure that people are able to keep their jobs.

Additionally, home refinancing has shown signs of improvement, which is helping stabilize the sector of the economy that’s at the heart of the recession.

In light of this, now may be the time to incorporate online – check out our post from last October detailing Reasons to Consider Starting a Small Business in a Recession.

After incorporating a small business online, you have to determine what your tax liabilities are – which usually is best done through the services of a certified public accountant.

It’s that time of year when we’re all thinking about filing our individual tax returns – however, there are also taxes for small businesses that need to be addressed to avoid the dreaded IRS audit, which can put the brakes on whatever you may be trying to accomplish.

The IRS site provides some explanation of the taxes a small business can be responsible for paying – these include: income taxes, self-employment taxes, employment taxes and excise taxes.

All businesses except partnerships are required to file an annual income tax return…partnerships file an informational return.

Self-employment taxes are for individuals who work for themselves, covering Social Security and Medicare. If you have employees, the employment tax(es) cover this along with their income withholding and unemployment insurance taxes.

Depending on what you do, you may have to pay excise taxes as well. These apply to companies that manufacture or sell certain products, operate certain kinds of businesses, use various types of equipment and receive payment for certain services.

Of course, it’s important to consult with an accountant to find out exactly what taxes you must pay…but short of that, take a look at the IRS’ Business Tax article to learn more.