Tax Liabilities of Small Businesses

Last updated on May 14, 2023

Businesses need to fulfill various tax responsibilities. Often, it is the lack of knowledge rather than the intention to evade taxes that leads many small businesses into tax non-compliance. Along with paying taxes on their income, estimated taxes, etc, small businesses also need to withhold taxes from their employees’ wages and pay them to the IRS.

Depending on the kind of business, the tax liabilities vary for a business. For those starting a business, it is essential to know every tax liability that they need to fulfill so that financial planning can be done and maximum taxes saved. The IRS is also providing free tax help to small businesses by holding a webinar on the 15^th of May. You may visit the IRS website to register for the webinar.

Small businesses must ensure that they are compliant with the tax laws because statistics reveal that small businesses are one of the top tax evaders. That makes the IRS more exacting when dealing with small businesses. Moreover, many small businesses do not have the resources to hire professional tax help to manage their taxes, which can lead them into tax problems.

To stay on top of taxes, small businesses must gather information about their tax liabilities, use the free help by the IRS and other government agencies, and always respond to the IRS when they initiate communication.