Entrepreneurs need to be aware of various tax obligations, including:
Income Tax: Depending on the business structure, income taxes can be filed as personal income or corporate income. Self-Employment Tax: This tax covers Social Security and Medicare for self-employed individuals. Payroll Taxes: If you have employees, you need to withhold and pay federal income taxes, Social Security, and Medicare taxes. Sales Tax: Some businesses are also required to collect sales tax on behalf of the state.