Business Tax Relief
Tax relief for small businesses
Tax relief isn't only for individuals – there are many businesses out there that can benefit from it as well. Business tax relief, in particular small business tax relief, can be extremely helpful for companies that are just starting out or that find themselves in financial difficulty.
What is Business Tax?
Business tax is the tax owners of both large and small businesses must pay on behalf of their companies. There are four types of business tax that owners may be responsible for. These include:
- Income tax. This type is often gathered and paid from employee salaries, though there are other means for securing the funds to cover it. It is typically paid throughout the year as income comes in.
- Self-employment tax. This tax applies only to people who work for themselves, and includes only Medicare and Social Security.
- Employment tax. A tax that an employer pays on behalf of his or her employees. It covers Medicare, Federal Income Tax, Federal Unemployment Tax and Social Security.
- Excise tax. Excise tax is applied to businesses that make, sell or use products or services that need to be taxed. Businesses will often roll the costs associated with this tax into the price of their goods or services.
Business Tax Relief
Tax relief for small businesses and larger companies will differ in terms of the tax credits, deductions and programs available. Small business tax refunds are more common, because these businesses often struggle more than larger, established companies. A sample of the types of relief options available include extension of business expensing, incentives to hire disconnected youth and veterans and even something as simple as business equipment tax relief, which can help a company manage the cost of upgrading equipment.
To take full advantage of the tax relief available for your company, it may be wise to look for business tax help online or seek the services of tax professionals or tax lawyers. They can help you examine your business' financial state, processes and debt-to-income ratio and give advice on how to capitalize on programs and incentives.