What types of taxes must a business pay?

In California, a business may be subject to several types of taxes depending on the type of business entity it is, such as a corporation, limited liability company (LLC), or partnership. State Income Tax: Businesses in California must pay state income tax on their profits. This tax rate is progressive, which means the higher the income, the higher the rate. Additionally, businesses may have to pay additional taxes on certain types of income—for instance, sales of certain products, such as alcohol and tobacco. Employment Taxes: Businesses must pay employment taxes, including Social Security and Medicare taxes, federal income tax withholding, and unemployment insurance taxes. Sales Tax: The majority of sales made by California businesses are subject to sales tax. Businesses must keep track of the sales and remit the money to the state. Business License Tax: Most businesses in California are required to pay a business license tax. This is a fee for the privilege of doing business in the state. Franchise Tax: Corporations and LLCs may be required to pay a franchise tax, which is based on their net income. Property Tax: Businesses may also be subject to property tax if they own property in the state. It is important for businesses to understand the different types of taxes they are responsible for paying in California. Businesses that are unable to pay their taxes on time may face penalties, so it is important to keep up with filing deadlines and regulations to avoid any tax issues.

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What types of taxes must a business pay?

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