What Qualifies as a Large Corporation?
A company must employ at least 500 workers to be classified as large. Large corporations create negative environmental impacts – their activities involve unnecessary travel which adds to congestion. They put local people out of business. More importantly, they do not work for a livelihood but for profit – for shareholders. Examples of Large organizations include Walmart, the world’s largest company by revenue, with 2.2 million employees.
Small and Medium-sized Enterprises (SMEs)
In small and medium-sized enterprises (SMEs), they employ fewer than 250 people, further categorized into micro enterprises (fewer than 10 employees), small enterprises (10 to 49 employees), and medium-sized enterprises (50 to 249 employees). Large enterprises employ 250 or more people.
Estimated Tax for Corporations
To calculate your estimated taxes, add up your total tax liability for the year and divide that number by four. A large corporation is one whose taxable income was $1 million or more in any of its three immediately preceding tax years. Missed quarterly payments will result in penalties and interest.
Corporation Tax Calculation
You can calculate Corporation Tax using the formula below:
Taxable Profit (Total Profit – Allowable Expenses – Capital Allowances – Losses – Depreciation) x Corporation Tax rate
Where:
- Total profit is the company’s profit for the accounting period before any business expenses are deducted.
- Allowable expenses are overhead expenses that the company can deduct from its profit.
Corporate Tax Rate in the United States
The corporation tax rate in the United States is a flat 21%. All corporations, regardless of their size or income, are subject to the same tax rate. To calculate your corporation’s tax bill, multiply its taxable income by 0.21.