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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.

3 Answers

  • 1 decade ago
    Favorite Answer

    Here's the source that would answer all of your questions:

    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.

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  • 1 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.

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  • Anonymous
    1 decade ago

    In order to fund his social plans

    Everyone is going to feel the tax increase

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