Business Tax Responsibilities
Determine the potential tax responsibilities of the new business on the federal, state, and local level.
Consult a professional tax advisor, accountant, and/or attorney before starting a business.
- Business Taxes
- Employment Taxes
If you have one or more employees, you will generally be required to withhold federal income tax from their wages. You also may be subject to social security and Medicare taxes under the Federal Insurance Contributions Act (FICA) and federal unemployment tax under the Federal Unemployment Tax Act (FUTA). If you are required to report employment taxes or give tax statements to employees or annuitants, you need an employer identification number (EIN).
If the business owns tangible personal property that is used to produce income, the property must be reported on a rendition form to the local county appraisal district, after January 1 and no later than March 31, each year. Business owners must report all inventories, equipment, and machinery. For additional information, contact the local county appraisal district. See the government pages of your local telephone directory for telephone numbers.