All businesses except partnerships must file an annual income tax return. Partnerships file an information return. Which form you use depends on how your business is organized. See Table 2 to find out which return you have to file.
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. If you are not required to make estimated tax payments, you may pay any tax due when you file your return.
Estimated Tax
Generally, you must pay taxes on income, including self-employment tax, by making regular
payments of estimated tax during the year.
Sole Proprietors, Partners, and S Corporation Shareholders
You generally have to make estimated tax payments if you expect to owe tax of $1,000 or
more when you file your return. Use Form 1040-ES,
Estimated Tax for Individuals (pdf),
to figure and pay your estimated tax. For more information, see Publication 505,
Tax Withholding and Estimated Tax.
Corporations
You generally have to make estimated tax payments for your corporation if you expect it to
owe tax of $500 or more when you file its return. Use Form 1120-W,
Estimated Tax for
Corporations (pdf), to figure the estimated tax. You must deposit the payments as explained
under Depositing Taxes. For more information, see
Publication 542.
Information courtesy of the Internal Revenue Service.
Business Taxes:
Income Tax
Self-Employment Tax
Employment Taxes
Excise Taxes
Depositing Taxes
