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Federal & State Taxes

A business entity should pay these taxes in the form of Estimated Tax Liability in the year in which the income earned. After the tax year is over, the business should file the annual tax returns as follows.

  • Sole Proprietorship - File Form 1040 along with Pricing C
  • Partnership - File Form 1065 and issue Pricing K-1 to partners
  • C Corporation - File Form 1120
  • S Corporation - File Form 1120S and issue Pricing K-1 for each shareholder

Employment Taxes

A business entity with employees are required to pay employment taxes such as withholding and pay federal & state taxes on the employees pay, paying and reporting FICA taxes ( Social Security tax & Medicare Taxes) and Unemployment Taxes.

Also, a business should file quarterly Federal tax returns – Form 941 and annual FUTA tax return – Form 940 apart from the annual Federal and State tax returns.