Small Business Making 3-4M Year? This Is a Tax Question.

This is why everyone should read The Fair Tax book.

And Catherine, many of us don't want our government paying for all of that. Many of us would be happy with roads and defense while paying for the rest locally and through charities but that'll never happen because the government NEEDS us to WANT all of these social programs since it gives them enormous power over us! Think about it, they have FIRST DIBS on our paychecks!! How crazy is that?!

Anyways, to answer the question, my dad owns a small business that makes several million a year and no one tries to talk to him the week he gets his tax bills in the mail. It's not a good week to even make eye contact with dad! What he pays in taxes is truly ridiculous. His yearly taxes are enough to pay off my house twice over at least and send both of my kids to four years of college easily twice over again!!

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I'd also like to add that one of the reasons that taxes are so high is to compensate for all of the taxpayer money lost to fraud and waste in the federal government. It's criminal the way these politicians have so little respect for where the money comes from. The way the government has recently been spending our children's children into poverty deserves a good butt-kicking all of the way from Capitol Hill back to wherever they came from!!! (and that statement is heavily edited from what I wish I could say on such a public forum!)

I have two small businesses close to the size you describe. both are 's' corps so taxes are paid personally by me. I also make sure to take advantage of any tax breaks I can. You mention they don't have the cashflow to pay off some long term debts because the money goes to taxes. There must be more to the story on those because any business debt payments should be defined as expenses and therefore payable before taxes. Good luck.

My ex-husband's business doesn't make quite that much a year, but I can tell you that his taxes are are astronomical, and they keep going up. He isn't expanding at this point because the health-care fiasco is just revving up and who knows how that will affect him. It's a small company with 40 employees. And the taxes make it bad enough that it's hard to hire or expand as well. We live in Illinois so it's bad here with state taxes as well. Federal taxes seem out of control. Very frustrating.

May I first point out that the alternative to businesses paying taxes is for you personally to pay more taxes. Bottom line, we want our government to pay for all kinds of things (roads, public schools, ensuring our clean water supply, police, fire department, disaster relief, family leave, unemployment, disability pay, building and health code enforcement, the list goes on and on), but then everyone complains about taxes. If we didn't pay the taxes we do, our country would be a third-world country.

I work for a company with about 100 employees, and yes, we pay a LOT in taxes. When you make millions of dollars in profits, you will pay hundreds of thousands of dollars in taxes. It is what it is.

My uncle pays his taxes quarterly, and seems to pay a great deal, a little over $125,000 each quarter... And he and his wife are the only employees!

Yes the taxes are high. Our business is about the same size you describe. We pay quarterly. It is just hubby and me and we pay through the nose.

We do have a good tax accountant and lawyer. We take advantage of any legitimate breaks we can. We are very conservative when it comes to taxes as far as crossing any line. You do not want the IRS after you.

Maybe a new accountant should review the books.