Ella Posted October 16, 2021 Share Posted October 16, 2021 What I mean by this is if you own a small business vs working for a business, do your tax rates change? It seems like in some cases they can be different from what I am reading. I am just trying to better understand it. When I say a small business, I mean something you do by yourself online that doesn't earn a lot (less than 30k a year). 1 Quote Link to comment Share on other sites More sharing options...
James Posted October 16, 2021 Share Posted October 16, 2021 Income is income and tax will be paid. As a business owner if you pay yourself a W-2 salary and you do not have your entity setup correctly it is my understanding you can get double taxed :/. Everything is a percentage I think business taxes are 21% of net profit. Which is why people think businesses typically do not pay much in taxes as there are ways to live the life of luxury and make sure your business does not make any net profit. Quote Link to comment Share on other sites More sharing options...
Sophia Posted October 17, 2021 Share Posted October 17, 2021 Just do what Jeff Bezos does and make it so your company earns zero every year! LOL Yeah James basically covered what I was going to say. This is something that always made me mad though. Like they tax smaller businesses so much so, they have to really boom to succeed and if they manage to, a larger corporation offers money to just buy them out. 1 Quote Link to comment Share on other sites More sharing options...
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