Business Taxes

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Federal Income Tax

Federal income taxes for businesses are imposed on all forms of earnings that make up a taxpayer’s taxable income, such as employment earnings or capital gains. The income tax is determined by applying a tax rate, which may go up as income increases.

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, you might have to pay estimated tax.

When beginning a business, you must decide what form of business entity to establish. All businesses except partnerships must file an annual income tax return. Partnerships file an information return. The form you use depends on how your business is organized.

Your type of business determines which income tax return form you have to file.

The most common forms of business are:
- The sole proprietorship.
- Partnership.
- Corporation.
- S corporation.
- A Limited Liability Company (LLC).

If you decided to carry out your taxes with MC Tax Group we will pinpoint every credit and deduction that your business is entitled to, we will make sure that you receive your maximum refund, and we will follow up with you because we are interested in working with you.

Sales Tax

As a small business owner, you are required to assess sales tax, collect it and pass it on to the appropriate authorities within the prescribed time. Sales tax rates and laws vary from state to state which can often lead to confusion, especially if you sell to customers in more than one state. In order to collect sales tax, your state may require you to obtain a sales tax permit. Some transactions that are exempt from sales tax are resold items, raw materials, and non-profits.

If your business sells a product or provides a service that is taxable, and if you are in a sales tax state, you will need to set up a process to collect and pay sales taxes and file sales tax returns periodically, determining and collecting sales tax can be very complex but here at MC Tax Group we can walk you through the steps of this process.

Collecting sales tax is one of the most confusing aspects of transacting business and that’s why MC Tax Group is here to make it easier.

Franchise Tax

Franchise Tax is commonly referred to as the “margin” tax.The tax is typically assessed in return for the “privilege” of doing business in a state, similar to a fee. As a part of its privilege, the owners of the business receive liability protections under state law. The typical franchise tax calculation is based on the net worth of or capital held by the entity.

You must file these forms, even if no tax is due:
- A Franchise Tax Report (No Tax Due, EZ Computation or Long Form) .
- An Information Report, Public Information Report, or Ownership Information Report.
You must file additional forms if you:
- Take any credits on your report.
- File as a tiered partnership.
- File as a combined group.

Do not worry because here at MC Tax Group we are skilled and experienced with taxes and we would like to walk you through the process. We want to help make your business thrive, we will help you achieve your goals, and we will keep you ahead of industry changes.

Fuel & Mileage Tax for Truckers

A fuel and mileage Tax is a tax imposed on fuels which are intended for transportation. Your company is required to maintain detailed records of your mileage and fuel tax purchases. Fuel Tax rates can change every quarter for some states. It is very important that you are able to keep up with these changes if you calculate your cost per gallon of fuel to determine where the best locations to purchase fuel are located. Remember some states have changes that go into effect in the middle of a quarter as well and that can add an additional layer of complication.

The International Fuel Tax Agreement (or IFTA) is an agreement to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. An operating carrier with IFTA receives an IFTA license and two decals for each qualifying vehicle it operates. The carrier files a quarterly fuel tax report. This report is used to determine the refund due and to redistribute taxes from collecting states to states that it is due.

This tax is required for motor vehicles to be used, designed, or maintained for transportation of persons or property. The IFTA works as a “pay now or pay later” system. As commercial motor vehicles buy fuel, any fuel taxes paid to the states is credited to that buyer’s account. At the end of the fiscal quarter, the buyer completes their fuel tax report, listing all the miles that were traveled in all participating jurisdictions and lists all gallons purchased in the same. Then the average fuel mileage is applied to the miles traveled to determine the tax that goes to each jurisdiction.

MC Tax Group can help breakdown the process to make it much simpler, we will help make sure you keep track of the records, we will solve any problems your business has, and more. We are professionals and we will provide professional and expert advice to help you achieve your goals with your business efficiently.

Employment Tax

When you have employees, you as the employer have certain employment tax responsibilities that you must pay and forms you must file. Employment taxes include the following:

- Social security and Medicare taxes.
- Federal income tax withholding.
- Federal unemployment (FUTA) tax.

When it comes to depositing and reporting employment taxes you must deposit federal income tax withheld and both the employer and employee social security and Medicare taxes. You also must report on the taxes you deposit, as well as report wages, tips and other compensation paid to an employee.

The IRS’ list of employment taxes refers to:

- The federal income tax withheld from employee pay and paid to the IRS Social Security and Medicare taxes (called “FICA taxes”) withheld from employee pay and paid to the IRS.
- Additional Medicare tax imposed on higher-earning employees.
- Federal unemployment taxes (FUTA tax) paid by employers based on number of employees and unemployment rates.
- Self-employment taxes, which are the Social Security and Medicare taxes paid by self-employed business owners.

All of these taxes (except self-employment tax) must be paid by employers, either through withholding or by direct payment, or both.

MC Tax Group is here to help you with all the forms and the paperwork. We will make sure that your employment taxes are collected, deposited, reported on time, and more. Following up with you is important to us so that we can keep you updated and you can also keep us updated on your business’ situation.

Excise Tax

Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. One of the major components of the excise program is motor fuel.

The Tax Increase Prevention Act has the following fuel tax credits:
- Biodiesel (including renewable diesel) credit.
- Biodiesel (including renewable diesel) mixture credit.
- Alternative fuel credit, and Alternative fuel mixture credit.
- Second generation biofuel producer credit.

Our organization, MC Tax Group will help you through all the steps to pay and report excise Taxes for your Business. For example we will help you fill out and file the different types of forms that qualify for your business.

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