Question by DW: How much money should I set aside for taxes for my small business?
I own a small business and it was just created in January 2011. I am planning on making about $ 10,000. Please let me know how much I should save for taxes in 2012? My thoughts are about 3,000 but I am unsure.
I am also planning on having about $ 5,000 in write-offs.
Best answer:
Answer by Farm Girl
Your best bet would be to discuss this with an accountant in your area. Tax rates are different for every state, county, and city. They also depend on the number of employees in your business.
Know better? Leave your own answer in the comments!
Like farm girl said, best to speak to an accountant. But i dont think you would have to pay taxes on any write offs. I would advise putting aside 25% of what you expect to pay taxes on.
If one is rich he or she may not need to worry so much about the percentage of annual income to have available. As general practice though – about thirth-five percent until takes are paid or until your accountant completes his or her study.
Given the estimated tax bracket you’re talking about, estimating 30% for taxes should be quite safe. However, make sure to consult a professional accountant.