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Categories: Business, Recent//By //Published On: August 2nd, 2017//Last Updated: March 4th, 2023//5.5 min read//Views: 9251//

In addition to business taxes required by the federal government, you will have to pay some state and local taxes. Each state and locality has its own tax laws. I have added links below to key resources that will help you learn about your state tax obligations. Having knowledge of your state tax requirement can help you avoid problems and your business save money. The most common types of tax requirements for small business are income taxes and employment taxes.

Income Taxes

Nearly every state requires a business or corporate income tax. Your tax requirement depends on the legal structure of your business. For example, if your business is a Limited Liability Company (LLC), the LLC gets taxed separately from the owners, while sole proprietors report their personal and business income taxes using the same form. Visit the General Tax Information link under your state for specific requirements.

Employment Taxes

In addition to federal employment taxes, business owners with employees are also responsible for paying certain taxes required by the state. All states require payment of state workers’ compensation insurance and unemployment insurance taxes. The following states/territories also require a business to pay for temporary disability insurance:

  • California
  • Hawaii
  • New Jersey
  • New York
  • Rhode Island

State and Territory Tax Resources

Use the links below to find out more about what you have to do to register and be open for business in your state.

  • Alabama
    • Business Tax Registration
    • General Tax Information and Forms
    • Workers’ Compensation Insurance
    • Unemployment Insurance Tax
  • Alaska
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Jennifer Mathews