Salon Business Taxes

Quick References for Owning Your Own Business

Depending on the type of structure that you file your business with the IRS, you'll pay different business taxes. The different types of business structures, these may vary depending on your location, are Sole Proprietorships, Partnerships, LLCs, and corporations. Here are the taxes that you can expect to pay as a small salon suite owner.

Business Taxes

Income Tax

A tax that governments impose on financial income generated by all entities within their jurisdiction. By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public.

Self-Employment Tax

A tax imposed on self-employed people, who must pay this tax in order to receive social-security benefits upon retirement.

Employment Tax

If/When your business gets large enough to support employees, your business will have to pay employment taxes. The employment tax helps protect employees in the event they can work on their own - includes support for Social Security and Medicare, Federal Income Tax, and Federal Unemployment Tax.

Excise Tax

An indirect tax charged on the sale of a particular good.

I shall never use profanity except in discussing house rent and taxes. -Mark Twain