Tax filings required for doing business in Washington State

Your business activity must be included in the federal tax return. Which return and when it will be due will depend on your choice of property. If you are a sole proprietor or a single member of an LLC, put it on Schedule C of your individual tax return (Form 1040). Otherwise, it goes into a separate tax return. If you only had expenses but no revenue, you would still need to complete a return to reap the loss either this year or create a net operating loss that is carried or carried forward.

Income tax: Washington State imposes a tax on total income. Some cities impose a similar tax. These returns are due monthly, quarterly or annually. The state (and possibly your city) will assign a frequency based on the information you provided in your application for your business license. Seeking help from a specialist can save you the hassle of completing your return more often than necessary. The tax rate depends on the type of activity. Many service companies pay state income tax at the rate of 1.5% of gross sales.

Sales tax: The state of Washington imposes a sales tax on the sale of tangible goods and many services. This tax is reported on the same revenue return discussed above. So, it can reach monthly, quarterly or annually. Price varies depending on your location.

Other state taxes: The state imposes other taxes on certain industries. For example, hotel / motel taxes, utilities, tobacco products, waste collection. Consult with a tax expert about taxes for your industry.

Employment taxes: When you hire your first employee, the government gives you a few more bureaucracy lists. Both the state and federal government impose various taxes on companies that have employees.

Federal Employment Taxes: The federal government requires all employers to complete quarterly labor tax returns (Form 941). These returns are usually returned on the last day of the month following the quarter. Form 941 tells the IRS how much income tax you deducted from employees, how much social security and medication you deducted, and your employer’s social security and medical contributions.