Tax Basics for Business Owners
Small business taxes feel overwhelming mostly because several systems overlap: federal income tax, self-employment or payroll tax, state income and franchise taxes, sales tax, and a calendar of filings. This hub explains the pieces owners meet most often, in plain language, and shows how they connect to entity choice and bookkeeping.
The starting point is understanding what you owe on business profit. Self-employment tax explained covers the 15.3 percent structure and how it differs by entity type. Because no one withholds it for you, estimated taxes come next: due dates, safe harbors, and a workable cash routine. The QBI deduction can meaningfully reduce income tax for pass-through owners, and it interacts with salary, retirement contributions, and the type of business you run.
Two guides deal with the records and reporting that support everything else. Tax basis basics explains why basis controls gains, losses, and distributions, and information returns covers W-9s and 1099s for contractors. The small business tax calendar puts the recurring federal deadlines in one place.
Multi-state issues are where many growing businesses get surprised. Sales tax nexus basics explains how economic thresholds can require collection in states where you have no office. State income tax and remote employees covers what a single out-of-state hire can trigger. For owners in states with high income taxes, the pass-through entity tax is a planning tool worth understanding.
We hedge tax law statements throughout, and where a figure is mentioned, it is labeled by year, because thresholds, rates, and even the underlying rules change with legislation. If you want personalized modeling, the entity hub and S-corp hub show how structure changes the math.
All 9 guides in this topic
- Self-Employment Tax Explained: Rates, Calculation, and Ways It Differs by EntityHow self-employment tax works, the 15.3 percent rate structure, the 92.35 percent calculation, the deduction for half, additional Medicare tax, and how entity choice changes what is subject to it.
- Estimated Taxes for Business Owners: Due Dates, Safe Harbors, and How to CalculateHow quarterly estimated taxes work for self-employed owners and pass-through income, the four due dates, safe harbor rules that avoid penalties, calculation methods, and practical cash management.
- The QBI Deduction (Section 199A): How the 20 Percent Pass-Through Deduction WorksA plain-English explanation of the qualified business income deduction, who qualifies, the taxable income thresholds, specified service businesses, W-2 wage and property limits, and planning implications.
- The Small Business Tax Calendar: Deadlines by Month for Owners, Payroll, and EntitiesA month-by-month calendar of common federal deadlines for small businesses, including estimated taxes, S-corp and partnership returns, payroll filings, 1099s, and extensions, with notes on state and entity variations.
- Tax Basis Basics for Business Owners: Why It Determines Gain, Loss, and DeductionsWhat tax basis is, how it is set for purchased, contributed, gifted, and inherited property, how it adjusts over time, and how basis, at-risk, and passive rules limit losses.
- 1099-NEC, 1099-K, and W-9: Information Return Basics for Small BusinessesWho must receive a 1099-NEC, how W-9s support reporting, the filing deadline, thresholds and recent changes, 1099-K basics, backup withholding, penalties, and a year-round process.
- Sales Tax Nexus Basics: When Your Business Must Collect and Remit in Other StatesHow sales tax nexus works after Wayfair, physical and economic nexus, common thresholds, taxable services and products, registration, marketplace facilitators, and steps to manage multi-state compliance.
- State Income Tax, Nexus, and Remote Employees: What Changes When You Hire Across State LinesHow hiring or working remotely in another state can create state income tax nexus, payroll withholding, unemployment registration, and foreign qualification duties for a small business.
- Pass-Through Entity Tax (PTET) Elections: The State Tax Workaround for Business OwnersWhat a state pass-through entity tax election is, how it interacts with the federal SALT deduction limit, who benefits, the mechanics and deadlines, and cautions before electing.
Not sure where to start? Browse the FAQ, look up terms in the glossary, or see the other topic hubs.