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While it is not something any entrepreneur looks forward to, planning for the appropriate taxes is an important step in preparation of a business plan. You will need to understand your responsibilities for taxes due from your business.

You will owe taxes on the income you pay yourself. Most income taxes are paid quarterly. This will include federal and state income taxes, FICA (both employee and employer portions), and Medicare taxes. You may also have a responsibility to pay into the SC unemployment compensation fund. If you employ others, you will have to withhold taxes from their pay, and to pay some portions of the taxes from your profits. It is also important to follow the government schedule for remitting the tax payments.

You will be responsible for collecting sales tax on any goods that you sell in your business. The guidelines for this responsibility can be found at these websites: http://www.scbos.com/default.htm and http://www.irs.gov.

These responsibilities carry financial, civil and potentially criminal penalties for failure to pay what is owed. In order to assure you are complying with the laws of South Carolina and the United States, it is wise to seek the advice of an attorney and an accountant. The laws do change frequently and a relationship with a professional who knows the latest information will be a valuable one.