Archive for the ‘What % is business taxed?’ Category
Business Tax Rates
Here’s the skinny on business tax rates…
Lots of people are asking what tax rate businesses pay. Well, here is is.
Sole proprietors are taxed at their own personal tax rate.
Partnerships and S-corporations are both pass-thru entitites and also pay tax at the owner’s personal tax rate.
The only entity that is different is the corporation.
Corporations pay 15% taxes on the first $50,000 profit.
$7500 + 25% if your profit is between $50,000-$75,000.
$13,750 + 34% if your profit is between $75,000-$100,000. If your profit is over $100,000 you should seriously think about forming another corporation.
All the best,
Larisa
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Taxes for small business partnership?
I started a garage door business, a partnership business with a long time friend. We’re not starting until next yr as of 1/1/2010. My question is how do we account for taxes? Is there a fixed percentage the government taxes small business? Thanks
Larisa’s Response: If you didn’t have any income for 2009, you don’t have to file taxes for that business. The government doesn’t consider you to be in business until you actually make some money. No, there isn’t a fixed percentage charged to small businesses. The amount of tax you pay is based on your profit–which is your income minus your expenses.