Taxation Rules For Business

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Taxation Rules For Business
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Taxation rules differ from business to business.
Have a glance over some vital tax rules for
variant business structures
Taxation Rules
Vertidigm.com
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Tax Rule For Sole Proprietorship

• Owner has to pay business tax
• Personal tax will not be filed
• Lower tax rates are awarded
• Tax is filed just once in a financial year
• Self-employment tax to be paid

Vertidigm.com
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Tax Rule For Partnership

• Income of each partner is taxable
• Business tax is to be filed separately
• Personal tax on share of income or loss

Vertidigm.com
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Tax Rule For Limited Liability Corporation

• Personal returns of the partners are taxable
• State Tax is an additional tax
• No tax on surplus earning
• Self-employment tax to be paid

Vertidigm.com
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Tax Rule For C Corporation

• Separate payment of federal tax, local tax and
  state tax
• Income tax is calculated on profit earned
• Corporate tax remains less than personal tax
• Double tax is to be paid when
• Profit is earned by corporation
• Dividend is distributed to shareholders

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Tax Rule For S Corporation

• Tax treatment is similar to partnership and sole
  proprietorship
• Tax on dividend earned by shareholders
• Owners get income after paying dividend
• That income is taxable but at lower rate
• Tax can be saved a lot

Vertidigm.com
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