Hey everyone,
I'm newly in business for myself and I have a possibly stupid tax question. I am a sole proprietor and I know I have to pay all the taxes on the income I personally receive from my business(about 20%).
Do I also have to pay taxes on my operating expenses(i.e. indirect job costs/overhead, etc.) and if so about how much? I will obviously be reducing the amount that I would need to pay taxes on by whatever amount I am able to deduct but its not a dollar for dollar deduction. Is there a rule of thumb percentage on just my operating costs I can start using now until I can see how things are going?
What about paying taxes on my profit?
Can anybody help me?
I'm newly in business for myself and I have a possibly stupid tax question. I am a sole proprietor and I know I have to pay all the taxes on the income I personally receive from my business(about 20%).
Do I also have to pay taxes on my operating expenses(i.e. indirect job costs/overhead, etc.) and if so about how much? I will obviously be reducing the amount that I would need to pay taxes on by whatever amount I am able to deduct but its not a dollar for dollar deduction. Is there a rule of thumb percentage on just my operating costs I can start using now until I can see how things are going?
What about paying taxes on my profit?
Can anybody help me?