PERSONAL AND BUSINESS TAX
Tax paid on one’s personal income is different from the tax paid on the firm’s earnings. In an incorporate firm the owners (shareholders) pay tax on both their income (salary or dividend from the firm) and firm’s income (profits). In partnerships and sole-ownerships, the tax is paid only once based on the firm’s profits. When you are running a business, it is very important to separate your personal income tax from the income tax of your company.
Every April 15th, everyone’s personal income tax submissions are due. This means, that an individual needs to file their tax return with the IRS for the income they received during the tax year.
Businesses are only responsible for filing an income tax return on earning once a year, but when the return is actually due is dependent on the company structure.
Corporations must file by March 15th.
Sole proprietorship and partnerships must file by April 15th.