Understanding Business Tax Requirements

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.

Learn more about what business taxes apply to your business.

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.