What are the Types of Taxes Entrepreneurs Need to Be Aware Of?
Entrepreneurs need to be aware of several types of taxes that can impact their business operations. These include:
Income Tax: This is tax levied on the net income of the business. Sales Tax: A tax on the sale of goods and services. Payroll Tax: Taxes related to employee wages, including Social Security and Medicare. Self-Employment Tax: For entrepreneurs operating as sole proprietors or partners, this includes Social Security and Medicare taxes. Corporate Tax: Applicable if the business is structured as a corporation. Value-Added Tax (VAT): A consumption tax placed on a product at each stage of production.