Do I need to file business income tax returns?

Whether or not you need to file business income tax returns and how much you need to earn before you pay taxes will depend on your business structure. C corporations in the United States are subject to a flat 21% corporate tax rate under the Tax Cuts and Jobs Act. There is no minimum income you have to meet before your small corporation is taxed.

How does federal income tax work?

The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay. If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax.

What does a business include in income payments?

A business must include in income payments received in the form of property or services at the fair market value of the property or services. A business may be organized as a sole proprietorship, partnership, or corporation. A sole proprietorship is an unincorporated business owned by an individual.