Business tax return is a form containing all the information about a person’s business details (nature of business, gross or annual income, taxable income etc.). Every business man owning small or large business has to pay for the tax and also for file business tax return to keep his business liable.
All businesses other than partnership need to pay tax and file for business tax return every year. Business tax can be calculated by applying ‘tax rate’ to business’s ‘taxable income’. There are different tax rates for small and large businesses depending upon their total taxable income. According to Small Business Administration, all types of small businesses pay about 19.8 percent of tax rate. Small business tax return can be filed for free. Small businesses include the companies having sale of about 35.5 million dollars and 1500 employs. It all depend upon the industry.
How do businessmen can lessen the business tax?
- If they employ their family members or any relative so that extra income could be cut down.
- If they could deduct their transport expenses they could lessen down their taxes.
- By making changes in business structure using different strategies and tricks.
- If they could start a retirement plan.
Generally, business tax return and personal lodge tax return are filed collectively but they can be filed separately if the tax corporation is according to IRS. It is mandatory for a business man to file business tax return even if there is no net income, they have to file business tax return and personal lodge tax return online however tax is not applicable on zero income or less. But if your income is income is taxable and at the time of payment you have not enough amount then you can make deposits and pay it as soon as possible or you can also file foe overdue tax return. If you are not running a business as an owner and having a business partnership then you do not need to pay business tax, you have to file for partnership income return.
If you are facing loss in your business then you have to pay business tax return and lodge tax return online or offline regarding all the other sources of income. But if you are constantly facing loss in business which exceeds your income limit then you may provide with crucial tax benefits. Now-a-days, IT skills, online works, technical work, graphics, tutoring and online working are included in small businesses.
If your business is facing loss then you can also file for prior year tax return to be in ATL (Active Taxpayer List) no matter how much you are earning from your business. And if you have paid your business tax then you can also file for lodge business tax return in order to get back your paid tax after a year.