Business tax impact and implication

Regardless of the product or service a business provides, all companies share two common concerns: profits and losses. While people form businesses to meet a need, those companies revolve around making money. At a certain point, making money includes minimizing expenditures.

In any venture, you will pay taxes. According to Benjamin Franklin, they’re one of two things which can ever be certain in this world. And, though taxes serve the public good, they can take a toll. This is especially true for new, small or family-owned businesses.

The effect of taxes on Illinois businesses

Throughout Illinois, business owners are likely celebrating a decline in unemployment insurance taxes for 2019. According to a November report from WIFR, this cost of doing business has decreased statewide for the past seven years in a row.

However, in addition to unemployment insurance tax, business owners may be responsible for taxes which include:

• Income
• Sales
• Excise
• Payroll
• Franchise

So, while businesses may benefit from the decrease in unemployment insurance tax, there are many other taxes which factor into a company’s bottom line.

For example, similar to paying taxes on a residential home, companies must pay property taxes based upon assessed property value. As far as business property tax is concerned, Illinois entrepreneurs stand in fifth place for the highest rates nationwide.

What does that mean for business owners trying to make ends meet?

When it comes to the bottom line, as a business owner you understand Uncle Sam will call upon a share of your profits.

As you form and build your company, you may want to talk to a business tax attorney. He or she could help you remain in compliance and protect your interests as you review how well your business planned for 2018, while moving into 2019 and beyond.