When Obama talks about breaks for small businesses, how does one judge the size of a business? ?
Is it just on gross sales?
I'm am partners in a business which has large gross sales (over ten million) but has a very low profit margin. The business I'm in is a grocery store, a notoriously low profit business.
93 employees right now. 20 full time.
My point is, I would like to considered a small business. Regardless of sales, we try our best too eek out a living.
- 1 decade agoFavorite Answer
Here's the source that would answer all of your questions: http://www.bloomberg.com/apps/news?pid=20601070&si...
And an exerpt:
According to the Internal Revenue Service, most small businesses organize in ways that allow their owners to pay taxes at personal rates rather than as corporations, which impose a second layer of taxes. Almost 95 percent of 21.5 million owners of small businesses who file as sole proprietors had receipts under $100,000 in 2007.
Another 4 million businesses organize as so-called subchapter S corporations, according to IRS data; less than 5 percent of them earn more than $200,000.
- Tax LadyLv 41 decade ago
The term "small business" has specific meaning; it's not just a subjective description. Generally you have to have fewer than 500 employees and revenues of less than 6.5 million a year. But there are different standards for different industries, such as the retail grocery business. From what you have posted, your grocery store meets the requirements to be legally considered a small business.
- Anonymous1 decade ago
In order to fund his social plans
Everyone is going to feel the tax increase