Everyone dreads paying taxes. Whether income tax or sales tax on goods and services, there is no doubt that any tax is too much. And for the business owner, paying taxes is a long and complicated process because not only does she pay taxes like consumers, but she must also remit taxes on behalf of others. Plus, international businesses will need to adhere to the tax codes of the countries in which they have operations. For new business owners, tax remittances can be overwhelming, so to facilitate your learning process, we have provided the main areas of business taxes and what to expect.

Income taxes are somewhat obvious to most business owners in that they need to be paid. Individuals have probably been paying taxes all their working lives and expect to continue paying when starting their own businesses. Two things are much different, though. First, the amount of income tax varies per state, province and country. The second issue deals with the number of income tax filings. For example, in a DBA (so and so doing business as), the owner may be permitted to file once a year, including all expenses and revenues of the business coupled with any other personal income and deductions. But for an incorporated structure, the business owner is an employee, and is dealt with separately from the business. Further, the business may be required to file returns in different countries, and at different times throughout the year.

Another concept in business taxes that you should expect are environmental fees. For example, if you run a garage, you will not be permitted to throw used tires into the landfill. Most likely, you will pay a per tire disposal fee which is generally passed on to the consumer. But you are responsible for the maintenance and management of these charges. Whether you charge your customers directly through their invoices, or indirectly by including it in the unit price, you must make your remittances to the appropriate government body according to the schedule the department sets. Failure to do usually results in late payment fees and/or fines.

Sales taxes are a huge portion of of a business' responsibilities. The problem with managing sales taxes is the fact that they are different per state, province and country. Then, within an area, too. For example, some states require that sales tax be collected from residents in that state, but not from those outside the state. Often, the decision lies in where the physical office or warehouse is situated. For all business owners, this can be confusing and time consuming. Then there are countries with GST, HST and VAT. Doing business in another country will undoubtedly require a local lawyer, accountant or consultant to help with the management of these types of sales taxes.

Property taxes are also included when discussing business taxes. Some cities and states have higher rates for areas zoned commercial and industrial than residential neighborhoods. Depending on the progress of an area, officials may decide to offer concessions in order to attract new business, so owners should be aware of these opportunities as well. Along the same lines, permits and licenses can be covered in business taxes. These are all a cost to doing business, and payment is expected on a regular schedule.

Finally, what makes the management of business taxes so onerous are the schedules that are associated with the payments. Unless you expect to pay late fees and fines, you must make remittances by the deadlines, not when you have the money to pay. The deadlines are generally not negotiable. And the fees add up rather quickly costing you much larger sums than budgeted.