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#1
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Just heard something on the news, verify?
A reporter assert that:
1. Most new jobs are started by small businesses 2. Most small business owners are in the $250K range Are these 2 asserts accurate? Link? B |
#2
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Depends how you define "small business owner".
I rather doubt most small business owners are clearing $250k profit a year income. If they are, then their doing quite well. Question is, how much are these new jobs paying in wages and benefits? If it's minimum wage without any medical benefits, then the new jobs are next to worthless for the people filling them. But that appears to be what our economy has trended towards.
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Question Authority before it Questions you. |
#3
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IIRC he didn't say, "Profit." I believe he said said income.
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#4
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If so, then after paying overhead, supplies, inventory, insurance, and employees, wouldn't be much profit before or after after taxes.
Poverty level job creation isn't worth squat to anyone trying to earn a living. Sounds alot like our current economy, no wonder so many people are on food stamps and such.
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Question Authority before it Questions you. |
#5
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On a small business, profit is usually taken as income.
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#6
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Basically same thing, different words.
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Question Authority before it Questions you. |
#7
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Even if you incorporate, you cannot just let it lie in the corporation's accounts past Dec 31. If you do, it becomes subject to the same corporate income taxes charged to large businesses, meaning you will pay double taxation on it, once as corporate income, next as personal income. Small businesses are pretty much forced to remove all profit as it occurs, or immediately spend it on capital or expense items.
IMO, most small businesses are probably generating about $200k per partner per year. The vast majority of them are professional practices of some sort. |
#8
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Quote:
http://www.irs.gov/pub/irs-soi/05petska.pdf edit: http://www.bls.gov/news.release/pdf/cewbd.pdf Any help? Last edited by dynalow; 02-23-2009 at 02:27 PM. |
#9
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Small businesses on or about the $250k mark actually have a great deal of leverage to avoid the tax, they simply shift more of their own expenses onto the corporation. It is as a floor value that will include all of the very wealthy that really concerns The Party of The Very Wealthy.
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#10
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"Small Business" covers a rather wide range. The SBA definition: "A business that is independently owned and operated that is not dominant in its field of operation, provided it has annual receipts not in excess of $500,000 and has fewer than 500 employees."
500 employees is a good size company compared to us at 26. We did our little part by hiring 3 new salespeople this year.
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1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15 '06 Chevy Tahoe Z71 (for the wife & 4 kids, current mule) '03 Honda Odyssey (son #1's ride, reluctantly) '99 GMC Suburban (255K+ miles, semi-retired mule) 21' SeaRay Seville (summer escape pod) |
#11
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If you're a restaurant, you are "small" if you do up to maybe $600k, maybe $800k a year. If you're a farmer you're still small if you do $5 million. OTOH if you're a personal chef, you're big if you manage to bill $80k.
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You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman |
#12
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Quote:
In my experience, item 1 is accurate. Over 90% of all business in the USA are considered small business. It follows that that class is going to do the most hiring. I'm looking at adding 2 employees myself. As to income, the amount reported is at least on par with several of those I work for.. That’s why I previously suggested you look into investing in one..... |
#13
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Quote:
What happens if you raise the taxes on the S corp owners who are currently being squeezed by recession? |
#14
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Quote:
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2004 VW Jetta TDI (manual) Past MB's: '96 E300D, '83 240D, '82 300D, '87 300D, '87 420SEL |
#15
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If the small business definition in use is that promoted by the U.S. Small Business Administration, the definition encompasses far more businesses than you may realize: http://www.sba.gov/contractingopportunities/officials/size/SUMM_SIZE_STANDARDS_INDUSTRY.html
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