2007-01-31 00:52:57 · 2 answers · asked by twatwaffle 3 in Business & Finance ➔ Taxes ➔ United States
You are not taxed on your gross income when you have your own business. You are taxed on your net income after expenses.
Estimate your net income after expenses. An estimate to start with would be to reserve 25% of your net income for taxes. This will cover the approximate 15% of Social Security and Medicare taxes, and 10% for income taxes. Your should send in this amount quarterly as estimated tax payments.
If after a year you find that you are either getting a refund or owe additional tax, adjust what you reserve for taxes accordingly.
2007-01-31 01:11:32 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
depending on your deductions taxes range any where from 20 to 30 percent .
i would hold 30% just to be safe better to have some left over than not enough
2007-01-31 01:10:04 · answer #2 · answered by swamp d 1 · 0⤊ 0⤋