Question

What are the taxes, licenses, and fees that a sole proprietorship entrepreneur needs to know and consider and/or pay? Also, addressing licensing fee, income taxes, unemployment taxes, sales taxes, employer withholding taxes, social security withholding, self-employment tax, corporate or business taxes, etc. for sole proprietorship business. Also, be sure addressing the business, the owners and the employees.

Answer 1

If a single person is the owner for a business and assumes all the assets and liabilities , it is a sole propreitorship business . Here are the taxes and Fees the sole propreitor needs to know :

1. Sales Tax - Applicable if the business is selling tangile goods or physical products

2. Safety Fee - If the business is involved in producing products like fireworks

3. Withholding tax - if there are employees involved

4. Food and Beverage Tax - If it is a food and beverage business

5. Prepaid fuel Tax = If any gasoline or other fuel is involved in the business

6. Motor Vehicle Rental tax - If the business has hired any vehicles/trucks for rent

7. Innkeeper's tax - If rental accomodations are taken for less than a month

A sole propreitor is also responsible to declare all profits as his/her personal income and pay self-employment tax.

An application named BT (Business Tax application) needs to be submitted to set up all tax accounts . A business Licence would also be required.

The licence is required from Local/State authorities depending on what business the sole propreitor is invloved in.