human
Can you give me a summary of the U.S. tax regulations for small businesses?
assistant
The United States has a a complex system of taxation for small businesses. Generally, small businesses must pay federal income taxes, self-employment taxes, state and local taxes, and payroll taxes. Federal income taxes are usually calculated according to an individual’s tax rate and business income, but there are deductions and credits to lower their tax rate depending on the type of business. Self-employment taxes pay for programs like Social Security and Medicare, and payroll taxes are paid by employers to cover employee benefits. State and local taxes are generally evaluated in terms of property, payroll, and sales taxes. Depending on the state, there may also be other fees or taxes. Overall, small businesses need to consider all of these factors when calculating their total tax obligations.