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Determine the Legal Structure of Your Business

Determine Your Federal Tax Obligations

Your federal tax obligations, the tax you pay to the IRS, is determined by the form of business entity that you establish (e.g. sole proprietorship, partnership, LLC). These taxes include:

  • Income tax
  • Self-employment tax (social security and Medicare taxes)
  • Estimated tax (a pay-as-you-go tax)
  • Employer tax (such as withholding tax)
  • Excise tax

Find the Right Tax Form

The forms you use to report your taxes depends on how your business is organized. Find out which forms you need to file:

  • Sole Proprietorship
  • Partnership
  • Corporation
  • S Corporation
  • Limited Liability Company (LLC)

Pay your State Income Taxes

In addition to federal taxes, your business must also pay state and local taxes (income, sales tax, and property tax). As with the IRS, the legal structure of your business determines your state income tax obligations. Learn more in our State and Local Tax Guide.

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