I'm about to start a business and was curious how much to keep out of the profits for taxes. Lets say i sell 50k a month in product with around 20% of profit, which is like 10k a month. Out of that 10K how much should I hold back for taxes? I do plan to use a bit of it to reinvest back in the business, probably 50% of the 10k or so. I'm just curious how you figure out how much to hold back so I don't get a huge tax bill at the end of the year that I couldn't afford. Also, if I only have to play taxes on the profit after business expenses, what kind of expenses can be deducted? thanks for any help you can provide, i'd consult an accountant but unfortunetely, all the money i currently have is tightly budgeted for startup costs. Thanks.
2007-05-06
14:03:34
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4 answers
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asked by
Jay
2