Taxation rules for business

Taxation Rules For Business

Taxation Rules Taxation rules differ from business to business. Have a glance over some vital tax rules for variant business structures:

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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.co

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

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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.co

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 Vertidigm.co

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.co

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