What types of taxes do I need to pay as a small business owner?

As a small business owner in California, there are three main types of taxes that you need to pay: income tax, sales tax, and payroll tax. Income tax is the percentage of money you need to pay to the state based on your gross business income. It can be calculated by filing Form 540 annually. Sales tax is the money you need to pay to the state on products or services you sell. It includes any physical items and some services. You need to register with the California Department of Tax and Fee Administration to collect sales tax. Payroll tax is money you need to pay to the state based on the salaries or wages you pay to your employees. This includes state disability insurance and state employment training tax. You can register for these taxes online with the California Employment Development Department. In addition to the above taxes, you may also be required to pay local taxes such as business fees, permits, and license taxes. It is important to check with your local city or county office to see if you need to pay any additional taxes. Overall, it is important to research the types of taxes you need to pay in California before you start a small business. It is also important to stay up-to-date with changes in taxation laws. Knowing all of the taxes you need to pay can help you ensure that you remain compliant with the law.

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What types of taxes do I need to pay as a small business owner?

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