Yes and no.
It all depends on the type of small business. Majority of small businesses are pass-through entities, meaning the owner, not the business, is responsible for paying tax. Because the owner pays tax, the owner is eligible for a refund, not the business.
What businesses are pass-through? Every business except for corporations. So, if your business is an LLC, partnership, or unincorporated, you as the owner must pay tax on any business profits at your individual income tax rate during the year. Then, at the end of the year, if you overpaid the federal or state government, you will get a refund. If you underpaid, you will owe tax.
If your business is a corporation (Co., Inc., Ltd.), then your business is responsible for paying corporate tax on all business profits. The owner only pays tax on payments received from the corporation, be it as wages or dividends. If a corporation overpays the federal or state government during the year, the business will get a refund. If it underpays, then it'll owe tax at the end of the year.
Have more questions about business tax? Need help filing your business tax return? Call us at (612) 440-3988! We love helping small businesses.