Akron Income Tax Co.
An Expert Guide by
Calculate your total business income by adding all revenue from sales, services, and other sources.
Deduct business expenses such as rent, supplies, wages, and utilities from your total income to get your net income.
Use applicable tax deductions like the Qualified Business Income (QBI) deduction, which allows up to a 20% deduction for eligible businesses.
Determine Taxable Income: After applying all deductions, the remaining amount is your taxable income.
Apply the appropriate federal tax bracket (10% to 37%) to your taxable income. If your business is a C-Corp, the flat tax rate is 21%.
Sole proprietors and LLC owners must also pay self-employment tax (15.3%) on their net earnings.
Calculate state and local taxes, which vary depending on where your business operates.
If required, calculate and pay estimated quarterly taxes to avoid penalties.