Understanding Business Tax Requirements
Understanding business tax requirements is essential for staying compliant with federal, state, and local laws, avoiding costly penalties, and making informed financial decisions.
Know which taxes apply to your business — from income and payroll to sales and property taxes.
This helps you plan ahead so you can take advantage of deductions or credits, and manage cash flow effectively, ultimately supporting long‑term stability and growth.
It is strongly recommended that Business One Stop users seek a qualified tax professional to understand all of your tax obligations.
Federal Tax
Your federal tax obligations are owed to the Internal Revenue Service (IRS) such as federal income tax, self‑employment tax, payroll tax.
The following are the five general types of business taxes.
- Income tax
- Estimated taxes
- Self-employment tax
- Employment taxes
- Excise tax
Each category of business tax may have different requirements. Understanding federal tax rules ensures you meet deadlines, take advantage of deductions and credits, and avoid costly fines. All businesses must file with the IRS, and many must make quarterly estimated payments to avoid penalties.
Learn more about what business taxes apply to your business.
State and Local Tax
In Virginia many businesses need to pay a corporate income tax, collect and remit sales tax, withhold state income tax from employee wages, and report business personal property used in operations.
Understanding these obligations and registering with the Virginia Department of Taxation helps you stay compliant and avoid surprises at tax time.
Determine what state taxes you owe at the Virginia Department of Taxation.
Additionally, many Virginia cities and counties may require additional business taxes or fees, such as local business licenses, gross receipts taxes, or property taxes. To determine your local tax obligations, check with your county, incorporated city or township where your business is located.
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