Federal Income Tax
Federal income taxes for businesses are imposed on all forms of earnings that make up a taxpayer’s taxable income, such as employment earnings or capital gains. The income tax is determined by applying a tax rate, which may go up as income increases.
The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay. If you do not pay your tax through withholding, you might have to pay estimated tax.
When beginning a business, you must decide what form of business entity to establish. All businesses except partnerships must file an annual income tax return. Partnerships file an information return. The form you use depends on how your business is organized.
Your type of business determines which income tax return form you have to file.
The most common forms of business are:
- The sole proprietorship.
- S corporation.
- A Limited Liability Company (LLC).
If you decided to carry out your taxes with MC Tax Group we will pinpoint every credit and deduction that your business is entitled to, we will make sure that you receive your maximum refund, and we will follow up with you because we are interested in working with you.
Contact us at 214-404-6008 for a free estimate.