2007-01-12 08:24:16 · 3 answers · asked by Microbeast 5 in Business & Finance ➔ Small Business
It isn't profit if you take it out.
2007-01-12 08:27:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
What does "takes out for profit" actually mean? A business makes profit if its incomes exceed its expenditures. If the owner takes some of that money out of the business, that is "income" to him or her, and the taxes due on it will be income taxes at whatever that individuals income tax rate is. If the business owner has set the business up properly, the business actually gets a tax BREAK on the dollars that go out to him as "salary", though he/she still owes income taxes on that money as an individual...
2007-01-12 16:35:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No. Small business owners, who own an S Corp or LLC, pay themselves dividends (profits) that are taxed as regular income.
It's only capital gains on shares that qualify for the long-term capital gains rate of 15%
2007-01-12 16:28:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋