This section outlines the general income tax laws that you will encounter when you own your own business. For more specific information, you should contact the Internal Revenue Service at 800-829-1040 or www.irs.org and the Colorado Department of Revenue at 303-238-SERV or www.taxcolorado.com.
If your business is a corporation located or “doing business” in Colorado, it is subject to state and federal corporate income taxes.
If your business is a general partnership, limited partnership, limited liability company, limited liability partnership, limited liability limited partnership or a limited partnership association, you must file state and federal partnership income tax returns.
Franchising offers a unique opportunity for individuals interested in operating a business. It allows you to both own and operate a business while drawing from the resources of the parent company.
Property taxes are assessed on any real and/ or personal property (land, buildings, furniture, equipment, etc.), which directly or indirectly produce income within your business.
Your employer must withhold and submit to the IRS your federal income tax withheld and your portion of Social Security (FICA) and Medicare taxes withheld. Your employer is also responsible for paying state and federal unemployment taxes (SUTA and FUTA).
The businesses you work for do NOT withhold or pay taxes on your behalf.
An Enterprise Zone is defined as an economically lagging area of Colorado in which special tax incentives are offered to businesses that expand or locate in the zone.