As a business owner, you need to pay various kinds of taxes, on the basis of your office location, nature of the business, and structure of ownership. Business taxes create a significant impact on the amount of investment and the profitability of the business. This is the reason, taxation is such an important factor in the decision-making process of a financial investment, as lower tax burden allows a company to generate higher revenue or lower the prices, which can then be paid out in the form of salaries, wages, and/or dividends.
As a business owner, you need to be aware of the following types of tax services in Santa Monica:
Local and/or State Income Tax: This is the tax levied by the local or state government on the annual turnover of your business. However, not all states in the US implement state-level income taxes.
Federal Income Tax: The tax levied by the federal government on the annual income of the business.
Unemployment Tax: This tax is allocated to the state unemployment agencies to fund unemployment assistance to workers those have been laid off.
Payroll Tax: As an employer, you need to pay or withhold this tax on behalf of your employees, on the basis of salaries or wages of the employees. In the United States, both federal and state authorities collect some form of payroll tax. The Social Security and Medicare (also known as FICA) make up the payroll tax.
Foreign Tax: If you have a brand operating in a foreign nation, then you need to pay income taxes to the foreign government on the income earned from the branch operating in that nation.
Sales Tax: If you sell goods and services, then this tax needs to be paid to the government. You need to collect the tax from your consumers and pass on to the state. This tax is based on the percentage of the selling price of the products and services and is generally set by the state.
Value-added tax: This is a national tax collected at each phase of manufacture or consumption of a product. Depending on the political climate, sometimes the taxing authority exempts certain necessary living items like medicine, baby food, and other food from the tax.
As a business owner, whether you have a corporate office or a retail store or a manufacturing unit, it is not possible to take care of all such varied types of taxes and decides which are the taxes you need to pay for your business while keeping the focus on administration and operation of the business. So, you need to hire a professional agency that provides tax services Santa Monica.
This is the reason you need to hire a professional CPA, enrolled agent, tax attorney or other such accounting professional, who come with proficient knowledge on tax services in Santa Monica and help to prepare the tax return for your business. The more complex is your tax situation; it is more compelling for you to bring in a tax professional at the earliest.