How do businesses pay income taxes?

Learn how different businesses pay their income taxes.

It depends on the type of business structure; whether it's a corporation and then with a corporation you've got a C-Corp and an S-Corp. A C-Corp basically pays income taxes themselves, whereas with a S-Corp the income flows through to the owners and the owners pay income taxes directly. With a C-Corp, if the owners are taking a salary then pay roll taxes were deducted out of their paycheck just like an employee. But the corporation also pays income taxes whereas with the S-Corp doesn't pay income taxes, the individual owners have to pay the tax. They file based on the type of the business, and based on their year end date. Most of them end December 31. A business has a lot of deductions and that's why a lot of big businesses don't pay taxes. Their taxes get different rates. An individual most of the time has their taxes withheld from their paycheck and those are called 941 taxes.

Written by Spencer Carlson - © 2002 Pagewise
You are here: Essortment Home >> Money & Finances >> Finance:Taxes >> How do businesses pay income taxes?

DISCLAIMER: PLEASE READ - By printing, downloading, or using you agree to our full terms. Review the full terms at the following URL: http://www.pagewise.com/disclaimer.htm. Below is a summary of some of the terms. If you do not agree to the full terms, do not use the information. We are only publishers of this material, not authors. Information may have errors or be outdated. Some information is from historical sources or represents opinions of the author. It is for research purposes only. The information is "AS IS", "WITH ALL FAULTS". User assumes all risk of use, damage, or injury. You agree that we have no liability for any damages. We are not liable for any consequential, incidental, indirect, or special damages. You indemnify us for claims caused by you.

FAQs: This site is published by PageWise, Inc. Would you like to link to this page? Reprint this article on your website? Reprint this article on paper? Want to reference this article in a paper, report, or presentation? Is there an error in this page? Do you have a follow-up question about this topic? Want to read our Privacy Policy? Read our legal/medical disclaimer?