When you’re running a business, you don’t need to be a tax expert, but you do need some tax basics. We give you the information you need to stay tax compliant, so your business can thrive. Put our knowledge to work for you:


Your question is a state tax question. Your state revenue department should provide information regarding sales tax to you. See State government websites for more information.

Certain businesses may have to collect particular federal excise taxes, and then report the tax on Form 720, Quarterly Federal Excise Tax Return and deposit the amounts collected. See Publication 510, Excise Taxes.


You file a federal income tax return annually, but the federal income tax system is a pay-as-you-go system. There are two methods for paying-as-you-go: withholding and estimated tax. Refer to Publication 505, Tax Withholding and Estimated Tax.

If your business is a sole proprietorship or an unincorporated single-member LLC with you as the sole owner, the income is attributable to you and must be reported on your individual income tax return. If your business is a partnership, an unincorporated multi-member LLC, or an S corporation, the ordinary business income passes through to the partners, members or shareholder(s) and is attributable to them and must be reported on their personal income tax returns.

If you owe more tax at the end of the year after taking into account any withholding on other income, deductions, and credits, you may have to pay an underpayment penalty. You should make quarterly estimated tax payments and/or increase the withholding on other income subject to withholding.

Form 1040-ES, Estimated Tax for Individuals includes instructions to assist you in determining if you need to make estimated tax payments, provides their due dates and explains how to pay them. You can also use our online tool, Am I Required to Make Estimated Tax Payments?

When you file your individual income tax return each year:

Generally, all other corporations must make installment payments if they expect their estimated tax for the year to be $500 or more.

Entities which do not pay estimated tax installments when they are due may be subject to an underpayment penalty (estimated tax penalty). For more information, see the related instructions for the income tax form filed.


Some business entities' income tax returns have due dates other than April 15. The instructions for each type of form note the appropriate due date:

Note: For any due date that falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. The term “legal holiday” means any legal holiday in the District of Columbia. Refer to Publication 15 (Circular E), Employer’s Tax Guide, Section 11, Depositing Taxes – Deposits Due on Business Days Only.