Business and License Taxes
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
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