Overpaying tax dollars to the federal or state government can typically get you a personal tax refund. But can small businesses also get tax refunds?
Refunds for businesses aren’t as common as refunds for individuals. That’s because, depending on the type of business, your company might not pay federal or state income taxes directly. Still, your small businesses can get a tax refund in some situations.
Here is what you need to know about small business tax refunds, plus tips on how to reduce your business tax bill.
Since 90% of businesses in the U.S. are pass-through entities, which include sole proprietorships, partnerships, limited liability companies (LLCs) and S corporations, they don’t pay federal income taxes to the IRS. Instead, their profits “pass through” to the owners’ personal tax return, and the business owner or owners pay taxes rather than the…
