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Q: Applicable State & Federal Taxes For My Business ( Answered,   1 Comment )
Subject: Applicable State & Federal Taxes For My Business
Category: Business and Money > Accounting
Asked by: wabiz-ga
List Price: $10.00
Posted: 15 Feb 2006 12:06 PST
Expires: 17 Mar 2006 12:06 PST
Question ID: 446246
I have recently incorporated my software company in Washington State.
I have no employees and do all of my business from my home office via
the mail. What taxes is my corporation required to pay?
Subject: Re: Applicable State & Federal Taxes For My Business
Answered By: taxmama-ga on 21 Feb 2006 04:41 PST
Dear wabiz-ga,

One of the benefits of Washington State is that they have no income tax.
You may be responsible for a variety of other taxes, or business license
registrations. You'll find all that information here:

As to your corporate income tax for IRS purposes? 

If you were to decide to become an S-Corporation, your corporation
would have no taxes at all. You would need to file Form 2553 to
tell IRS about this decision. And, most likely, you need to do
that by March 15, 2006.

If you file as a regular C-Corporation, you will pay 15% on your
profits, up to the first $50,000 of profits. If your profits are
higher, use this table to look up your tax rate.

It would be very wise, especially in your first year of business, to
engage the services of an Enrolled Agent or CPA to help you make 
those decisions and to prepare your first tax return. 

Good luck in your new business. 

Best wishes, 

Your TaxMama-ga
Subject: Re: Applicable State & Federal Taxes For My Business
From: tintanda-ga on 20 Feb 2006 16:40 PST
Ask your CPA, you will want him/her to do your tax return when the time comes.

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