7 Keys to Deducting it All » profits

Q&A: If you ran a small business, would you want to hire people if the government taxes you on NO profits?

Fri, 10 Feb 2012 12:28:24 +0000

Question by -Mewtwo-: If you ran a small business, would you want to hire people if the government taxes you on NO profits?
If you own a small business and want to hire people but new tax comes in stating you must pay a percentage on all your sales, profit or not, would that make you want to hire people or call it quits?
Lets say you ran a family business or a startup, profits were negative, does more taxes really make sense?

Best answer:

Answer by Stickboy
No, taxes on income is extortion.

Add your own answer in the comments!

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.

Give your answer to this question below!

Q&A: I have a question about small business taxes regarding profits?

Sat, 18 Jun 2011 14:38:22 +0000

Question by Emily: I have a question about small business taxes regarding profits?
I have an LLC in California.

If I pay taxes on the first years profit, and what’s left of my profits rolls over to the next year do I have to pay taxes on them the next year also? Or is it just for the one year?

To be more clear, do I keep paying taxes on the profits from the years before or is it just each years profits are calculated that one year and only taxed that one year?
We have elected to keep it as a pass-through. We’re not filing as a corporation.

Best answer:

Answer by Tomk
You are only taxed on the amount of profit you make each year. You figure that on Schedule C of the 1044 and it has nothing to do with profits you made in prior years.

Know better? Leave your own answer in the comments!