Business and License Taxes

Business Tax

Definition - Generally imposed on net taxable income. Net taxable income for corporate tax is generally financial statement income with modifications. Rate of tax varies by jurisdiction.

Examples of Business Taxes - Starting a business, owning a business

Current Rates in Illinois - Corp. pay 7.0% income tax and 2.5% replacement tax

License Tax

Definition - A fee paid to the government for the privilege of being licensed to do something

Examples of License Taxes - Tax on license to sell liquor, practice medicine, handle food, etc.

Current rates on license taxes in Illinois vary

Money that comes from taxes most likely goes towards government spending