2019 Small Business Resource Guide 2019 Small Business Resource Guide | Page 32

L E GA L
LEGAL
BUSINESS TAX
REQUIREMENTS
Your business will need to meet its federal, state, and local tax obligations to
stay in good legal standing. Your state income tax obligations are determined by
your business structure. For example, corporations are taxed separately from
the owners, while sole proprietors report their personal and business income
taxes using the same form.
Your business is legally required to pay taxes and keep accounting records on
a consistent yearly schedule called a tax year. A tax year can be the same as the
calendar year. A fiscal tax year is for businesses seeking to end a 12- month
accounting cycle in a month other than December, and a short tax year is if
your business wasn’t in existence for an entire tax year, or you changed your
accounting period. Tax laws vary by location and business structure, so you’ll
need to check with state and local governments to know your business’ tax
obligations.
Your business structure and location will influence which taxes your business
has to pay including:
Federal Income Tax
Every business, except partnerships, must file an annual
return. Partnerships file an information return. 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.
INTERNAL REVENUE SERVICE
819 Taylor St. #6A14 | Fort Worth, Texas 76102
682-707-0177
To Make an Appointment: 844-545-5640
www.irs.gov
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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. 
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.
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