Whether you are an individual or a business owner, filing taxes each year is a requirement. Although there are similarities between individual and business tax filing, there are also significant differences. As one of the leading tax accounting firms in Texas, we will discuss their differences:
- Payment expectations
An individual taxpayer who works for a company or employer typically files their taxes one time each year. On the other hand, business taxes need to be paid every quarter. This applies whether or not the person is self-employed or filing taxes for a business. Hence, seeking tax services in Round Rock, Texas is a wise choice for business owners to ensure accuracy and timeliness.
- Tax rates
Tax rates vary greatly between individual taxpayers and business owners as well. Each type of business structure is subjected to various tax rates. Self-employed individuals are required to pay self-employment tax, which includes both the employer and employee contribution. By contrast, larger businesses are subjected to corporate income tax rates. Hence, many prefer to hire accounting and bookkeeping services to make the task much easier.
Tax Day in the U.S. is every 15th of April each year, with exceptions made for holidays. However, taxpayers who are business owners face several other deadlines. Aside from the quarterly tax filing deadlines, they must also attend to payroll taxes each month and the final tax returns which are due once every year – typically between March and May.
With tax season coming to a close in a few months, it’s best to resolve any tax problems you have at the earliest possible date. We at KF Tax & Accounting, P.C. offer tax resolution and preparation services to make the experience stress-free. Arrange an appointment with us to get started.