The USA has a structured tax system at both the federal and state levels. The federal corporate income tax rate is 21%, with additional state taxes varying by jurisdiction. Some states, like Wyoming and Nevada, have no corporate tax, while others, like California, impose higher rates.

Pass-through entities (LLCs, S-Corps) are taxed at the individual level, not as corporations. The USA does not have a national VAT, but sales tax applies at the state and local levels, ranging from 0% to over 8%.

Businesses must comply with payroll taxes, including Social Security and Medicare, withheld from employees' wages. Foreign businesses operating in the USA may be subject to local taxes, with tax treaties preventing double taxation.

Companies must file annual tax returns with the IRS and state authorities. Non-compliance can lead to penalties. However, tax credits and deductions are available, such as R&D credits and small business incentives, helping reduce tax liabilities. Proper tax planning is essential for businesses to maximize benefits and remain compliant.