ALL TAXES THAT A SMALL BUSINESS CORPORATION PAYS IN THE US AND CANADA

Please note that tax regulations may change, and it's always advisable to consult with a tax professional for the most up-to-date and accurate information. Here's a general overview of taxes that a small business corporation may be required to pay in the United States and Canada:

United States:

1.    Federal Income Tax: Corporations are subject to federal income tax on their profits.

2.    State Income Tax: Depending on the state where the business is located, there may be a state-level income tax.

3.    Employment Taxes: Businesses are responsible for withholding and paying Social Security, Medicare, and federal income taxes on behalf of their employees.

4.    Sales Tax: Sales tax is imposed at the state level, and businesses may be required to collect and remit sales tax on qualifying sales.

5.    Excise Taxes: Some industries may be subject to excise taxes on specific goods or services, such as alcohol, tobacco, or fuel.

Canada:

1.    Federal Corporate Income Tax: Businesses are subject to federal income tax on their profits.

2.    Provincial or Territorial Corporate Income Tax: Depending on the province or territory where the business operates, there may be additional corporate income tax.

3.    Goods and Services Tax (GST)/Harmonized Sales Tax (HST): Businesses may need to register for and collect GST or HST on taxable goods and services.

4.    Employment Taxes: Businesses are responsible for withholding and remitting Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and federal and provincial income taxes on behalf of their employees.

5.    Excise Taxes: Some industries may be subject to excise taxes on specific goods or services, similar to the U.S.

It's important to note that tax obligations can vary based on the specific circumstances of the business, its location, and the nature of its operations. Consulting with a tax professional or accountant is crucial to ensure compliance with all relevant tax laws and regulations. For access to professionals for advice on selling your business in the US and Canada, simply CLICK on the button below.