Читать книгу Small Business Taxes For Dummies - Eric Tyson - Страница 36

Most small business owners pay income taxes at the personal income tax rates. That’s because the vast majority of small businesses are run as sole proprietorships. And many of those that aren’t, such as partnerships, LLCs, and S corporations, pass through their income in such a way that the income is generally taxed to its recipients as personal income. Some small business owners pay a corporate rate if their business is incorporated as a regular so-called C-corporation. (The type of business entity you elect is discussed in Chapter 2.) See the later section “Corporate income tax rates” for more details.

When it comes to federal income taxes, many people remember only whether they received a refund or owed money. But you should care how much you pay in taxes and the total and marginal taxes that you pay so you can make decisions that lessen your tax load. Although some people feel happy when they get refunds, you shouldn’t. A refund simply signifies that you overpaid your taxes during the previous year. When you file your income tax return, you settle up with tax authorities regarding the amount of taxes you paid during the past year versus the total tax that you’re actually required to pay, based on your income and deductions.

In this section, I define important tax terms such as total taxes, taxable income, marginal tax rates, and corporate tax rates, and I also discuss the federal and state income tax systems.