Taxation business entities are legal entities created to pay taxes on behalf of a company. These entities are subject to federal, state, and local tax laws, and are responsible for filing all the applicable tax returns and paying any taxes owed. They can be used for multiple tax purposes, including income, property, capital gains, sales, payroll, gift, and estate taxation. By setting up a taxation business entity, companies are able to take advantage of certain tax benefits while also reducing both their paperwork and financial obligations. Choosing the right taxation business entity is essential – so it’s important to do your research and ask the right questions when selecting which option is best for your business.