just started a business and kneed to know the taxes to set aside
2007-10-05 09:23:15 · 2 answers · asked by James B 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
In the US? Your income tax depends on how much you make and on your personal situation, so there's no way to estimate that without more info.
In addition to income taxes, you'll owe self-employment tax that will end up calculating to around 14% of your net.
2007-10-05 10:13:53 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Here are some ballpark figures. If you think your business profit for 2007 will be $25K, set aside 25% for fed and state taxes, if it's going to be $50K, set aside 30%. If you think it will be closer to $100K, set aside 35%. If over $100K, set aside 40%.
You will pay self employment tax of 15.3% on your profit and this profit will be taxed at your ordinary income tax rate, which is dependent on your taxable income.
2007-10-08 16:42:23 · answer #2 · answered by Nick, CPA 2 · 0⤊ 0⤋