Business Licenses and Permits:: Published by Corporation Service Company » Blog Archive

When establishing your business it is important to know your state’s tax laws so you can register for the appropriate tax accounts. Each state has its own tax rules so it is important not to develop a mindset that all state tax laws are created equal.

The most common type of taxes business owners pay are sales, unemployment and withholding. But it should be noted that not all states require business owners to pay each of these taxes. For example, Wyoming is one state of several that does not have an income tax, thus businesses do not need to pay a withholding tax.

Businesses in some states have an even smaller tax burden. In New Hampshire owners don’t have to worry about paying sales or withholding tax. However, this is not the norm. In many states such as Pennsylvania, businesses have to pay sales, unemployment and withholding taxes.

These three main types of taxes don’t represent the only types of taxes business owners must pay. There are also certain excise taxes issued on items such as fuel, alcohol and cigarettes, and certain types of businesses can even pay lodging and occupancy taxes.

With so many different types of taxes that your business could potentially have to pay, make sure you become very familiar with your state’s tax laws. A good place for information is the website of the Department of Revenue or Taxation. Here they will have statutes and laws and often provide publications breaking down the different types of taxes imposed.

Ryan Julson, Business License Research Analyst, Corporation Service Company