Corporate Tax in the United States
Just like any other country, the United States has specific laws concerning corporate tax. The federal government has outlined the necessary clauses and the state as well as local revenue departments ensure seamless implementation of the same.
The tax rates are not fixed, and usually it can vary within 15% to 35% of the annual income. As mentioned in some other sections of the website, the rules governing the corporate tax is subject to continuous revision. The mode of tax payment remains the same. Companies have to file their taxes every year just like the rest of the individuals who pay their personal taxes.
All domestic and international organizations operating within the country will have to shell out a figure every year by the name of corporate taxes. The Internal Revenue Service, a division of the Treasury Department keeps a close watch on the companies to ensure that the latter pay their taxes without fail. Corporates can seek exemptions in the tax amounts. However, that might require permission from the IRS.
I will be listing the corporate tax rates (as of 2010) in this section. The authorities have segregated the tax brackets into eight. In order to be eligible for corporate tax payment, the institution must fall in either one of these categories. The tax brackets reveal the average yearly income of the company in question. The larger the income, the higher will be the corporate tax levied. Small and medium scale business organizations that make a figure under $50,000 annually have a flat corporate tax rate of 15%. Companies that boast of returns ranging in between $50,000 to $75,000 will have to expend approximately $7,500 and 24% of the yearly revenue. Multinational companies that make more than $18,333,333 and above will have a flat corporate tax rate of 35%.
Small business owners who have little or no experience with filing the corporate taxes should seek help from a respected authority in the domain. Countless tax specialists and attorneys have set up their offices within the country. The important point to bear in mind is the presence of tax credits, which any enterprising entrepreneur must never overlook. One can save considerable figures every year by opting for the federal tax cuts. Moreover, who else is the most preferred candidate to enlighten the ignorant minds other than a tax specialist!
A company might acquire large sums of money, which the federal government may not tax. These include cash obtained via formations, acquisitions and reorganizations. The law expects the shareholders to give away a portion of the amount earned as the company dividends as corporate tax!
Corporate tax return calculators should help you in getting some idea about the approximate sum that one must pay as tax to the IRS. Electronic filing of the corporate tax is a blessing for many companies. The forms will be submitted electronically, and the appropriate sums will be transferred over to the federal government in a suitable manner.