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As a small business owner, why does it cost me more in taxes for my employees than it does for salaries?

Wed, 31 Oct 2012 15:39:57 +0000

Question by ladyl54: As a small business owner, why does it cost me more in taxes for my employees than it does for salaries?
Due to this situation, expansion of our business to a profitable level is next to impossible. The tax man gets all the money while we do all the work. We’d really like to keep a few more dollars so we could hire more employees and enjoy.

Best answer:

Answer by Wayne Z
It doesn’t.

You are greatly mistaken.

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If a small business owner buys real estate as an investment, can it be written off in his/her taxes?

Mon, 01 Oct 2012 05:17:30 +0000

Question by E: If a small business owner buys real estate as an investment, can it be written off in his/her taxes?
The small business is not a real estate business. Can the interest and/or principal be written off?

Best answer:

Answer by SuperCactus
If the business buys property the property becomes an asset of the business. If the owner buys property he/she is a real estate investor and must operate by those IRS rules.

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As a small business owner can I write these things off on my taxes?

Thu, 13 Sep 2012 14:58:54 +0000

Question by Shaun D: As a small business owner can I write these things off on my taxes?
I started a business 1 year ago and am not bringing in much money from it as of now. Every tax write off I can get would be important. I would like to know if I could write off the following things.

- All work related gas mileage for meetings.
- Purchased Laptop.
- Multimedia Development for Non-Profit Community Project.
- Blackberry Business Monthly Data Plan
- Website Hosting Fees

I of course have documentation of the listed.

Best answer:

Answer by MadMan
I think so except for the work for the non-profit project – no one is allowed to deduct time from taxes. That is, you can volunteer as much as you like but you cannot put a monetary value on it.

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How can you as an employee verify that the small business owner you work for is actually paying taxes?

Wed, 22 Aug 2012 04:58:00 +0000

Question by tmellen58: How can you as an employee verify that the small business owner you work for is actually paying taxes?
If the employer has been taking out taxes out of your check weekly(federal,state,social security) how can you be sure he is actually paying in and not pocketing the amount he takes from your pay?

Best answer:

Answer by Bruce
You can’t.

The IRS has ways to figure that out.

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what form can I file to protect myself from my husbannd not filing taxes on time. he is a small business owner

Sun, 01 Jul 2012 23:32:09 +0000

Question by sunridertravel: what form can I file to protect myself from my husbannd not filing taxes on time. he is a small business owner
my husband owns his own business and is up to his ears and past with all kinds of debts, including taxes. I heard there is a form I (his wife) can file that says I have no control or knowledge of how he is conducting his business. Any advise would be greatly appreciated. Time is important. thank you.

Best answer:

Answer by SweetBrunette
Yes, there is filing taxes separated from the husband and informing that you have no control or knowledge of how he is conducting his business.
Fill the 1040 Form and follow the direction to be clear about separating tax file not joint file with your husband.

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How much in taxes will I have to pay government as small business owner claiming $40000?

Fri, 22 Jun 2012 09:08:52 +0000

Question by sughs1: How much in taxes will I have to pay government as small business owner claiming 000?
I have not filed taxes for two years and made 40,000 in 2011 and 35000 in 2010. I am single . How much will I have to pay? Any tax savings tips or deduction to know about for those years. I live in Illinois, and do not own a home. I am self employed with LLC and my business started up end 09 but did not operate until 2010.

Best answer:

Answer by A Hunch
If it’s a corporation. you need to file separate taxes for the corporation and for you.
The corporation needs to pay you a salary = you are a normal W2 employee and would have regular tax withholdings.

If this is not how you have been doing it, you need to consult with an accountant or enrolled tax agent to figure out how to fix your situation.

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How do you pay taxes on what you make as a small business owner?

Tue, 08 May 2012 13:58:29 +0000

Question by Flying Cricket: How do you pay taxes on what you make as a small business owner?
Im starting my own business here very soon and was wondering how this works. We will be a coffee shop/restaurant and we are wondering how we pay taxes to the government. I know we charge taxes on everything we sale but how do we know exactly how much money we pay to the government and how do we give it to them?
We would be a independent business not a corporation LLC or any of that just a small business!

Best answer:

Answer by Kyle
You’ll have to be more specific… It depends on whether your coffee shop will be set up as a corporation (either an S or a C Corp), an LLC, a partnership, a sole proprietership, etc. The tax ramifications are very different depending upon your choice of business structures. Good luck with your coffee shop!

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What types of Mileage can a small business owner write off for taxes?

Mon, 05 Mar 2012 12:31:23 +0000

Question by mountaineskape: What types of Mileage can a small business owner write off for taxes?
Can I log every time I drive to my business to work? When I go to the bank, store etc.? I just need to know what exactly will work come tax time.

Best answer:

Answer by pj32
you cant write off the trip to and from work but you can write off trips to the bank, pick up, delivery of work material. I own a hydraulic repair shop and i wrote off all my parts runs, bank runs, business trips stuff like that any thing that is related to the business, you also can write off any thing that you personally buy to perform your job, like for me tools, work boots, safety glasses, work cloths, find a good CPA and they can tell you what and how to write off things, my CPA has a year end check list of the most forgot about write offs, you my want to ask about that as well, hope this helps I’ve been doing it for years and still learning new ways to help out on taxes. good luck

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Q&A: Small business tax question, are the profits of a small business the same as the pay for the owner?

Sun, 05 Feb 2012 17:09:22 +0000

Question by g: Small business tax question, are the profits of a small business the same as the pay for the owner?
I always thought that the profits for the business were technically separte from the actual income for the owner… and are taxed differently…

but it may depend on what kind of business you have set up?

I’m asking because I’ve often heard people basically use “small business profit” and “owner personal income” in conversations as the same thing, bouncing back and forth between the terms, apparently meaning the same thing?

Best answer:

Answer by Judy
Your question is more complex than you realize.

Profits from a sole proprietorship, and most LLC’s, and s-corps, just flow through to the owner’s tax return so are part of their income for tax purposes, even if they leave the money in the business account.

If the business is a c-corp, then anything paid out to the owner as salary or dividends is taxable to the owner, but money can be left in the business.

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Does a small business owner save taxes by including his own salary as an expense?

Sun, 27 Nov 2011 06:33:22 +0000

Question by sunnskye: Does a small business owner save taxes by including his own salary as an expense?
If the salary is included as an expense, then the income tax for the business is less, but of course, the owner has to pay his own income tax. So is it better to not pay yourself a salary and somehow finesse it so that you deduct everything and pay no income tax? References would really help here. Thanks!

Best answer:

Answer by ninasgramma
Since this is a small business, I assume it is not incorporated.

A sole proprietor cannot pay himself a salary. Partners also do not pay themselves salaries but pass through income to the partners, which is entered on the individual returns.

So the answer is no, you cannot deduct everything and pay no income tax.

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