Entrepreneurs are subject to several types of taxes, including:
Income Tax: Depending on your business structure, income tax can be filed as a sole proprietor, partnership, corporation, or S corporation. Self-Employment Tax: This covers Social Security and Medicare taxes for self-employed individuals. Employment Taxes: If you have employees, you need to withhold federal income tax, Social Security, and Medicare taxes. Excise Taxes: These apply to certain types of businesses, such as those that sell specific goods or services (e.g., fuel, tobacco).