Personal income tax: what most small businesses actually pay
If your business isn't a limited company, its profit is your income — and your state collects the tax on it.
Who this is for
A business name, a partnership, or a shop that was never registered at all. In law none of those is separate from you, so there's no company to tax.
What gets taxed is your income, and business profit is income. The office that collects it is your state's internal revenue service, not the federal one.
How it's worked out
Turnover less the cost of running the business gives profit. That profit is put on the same bands a salary would be, and tax comes out of the top of it.
So every legitimate expense you never recorded, you paid tax on. Recording purchases is not paperwork — it is money.
It's annual, and it's yours
One return a year to your state. If you also draw a salary somewhere, that income belongs on the same return — your state assesses you, not each source separately.
BizBrada shows the business side, which is the part your records can answer. Where other income exists, say so at filing and the professional reviewing it will fold it in.
If you incorporate later
The day you become a limited company, this stops and company income tax starts. Change it in your tax profile and BizBrada switches which report you see.