Of course all businesses are required to report their income and deductions and pay various taxes to federal, state and local taxing authorities. Depending upon the type of entity chosen for ownership of the business, there will be more or fewer filing requirements and more or fewer different types of taxes. In addition, there are filing requirements and tax obligations common to all business entities but applied only under specific circumstances, such as payroll taxes, business privilege taxes and mercantile taxes. Obligations for Pennsylvania sales and use tax collection and remittances, as well as sales tax exemptions vary by type of business, business location and specific circumstances. Location of a business will also dictate which locally enabled taxes are required and the rates applicable. Nexus to different states may require filing multiple state income tax returns as well.
In addition to determining all of the taxes for which a business is subject, it is also necessary to know the method and timing of the requirement to remit the taxes assessed on the business or collected by the business, as well as the timing for filing of forms to account for the funds so remitted. In some cases, the taxes are required to be deposited by certain dates and forms filed by other dates, and in other cases, the taxes are remitted together with the forms. In some cases, the due dates are the same for all taxpayers and in other cases, the due dates vary based upon the type of entity or the volume of tax involved. In all cases, either late payment or late filing of forms is subject to penalty.
Information on choosing the BUSINESS entity [form or ownership of the business] as well as federal and Pennsylvania registration information can be found under the captions for NEW ENTITIES above, while various federal and state TAX RATES can be found under the captions for TAX RATES above. This information is a selection of topics that may be of interest to a reader of this site; however, information presented on this site is not all-inclusive of all considerations that may be necessary relative to a selected topic or of all topics that may be necessary for consideration by any business or individual entity. Readers of this site should not rely upon the information contained herein without consultation with tax counsel. Roy & Associates, PC is not responsible for any actions taken in reliance on this information, but only for information provided to its clients under terms of written engagement letters for services to be provided.
In order to obtain a complete understanding of the total potential tax filing obligations of a new business, please refer to the contact information listed on this blog under CONTACTS in order to arrange for an appointment to discuss these obligations, which ones apply under what circumstances, and what other tax obligations that may be applicable with a member of Roy & Associates, PC. We welcome new business clients.