A fair profit for a small business is between 9% and 37%.
Self Employment Tax – You Can Stop Looking at Me Now!
No other tax confuses the self employed than the self employment tax. It is reported on Schedule SE with your Form 1040. Learn why and how to calculate this tax.
Form 941 is the employer’s quarterly federal tax return. It reports how much federal income taxes were withheld; Social Security taxes and Medicare taxes that are due and how much was paid in deposits to the Internal Revenue Service. The report is filed every three months for each of the four calendar quarters.
Simply put, this is a tax on your net earnings from your small business operation. If you are unincorporated, you have to pay this tax. This includes those in partnership arrangements, and in any form of Limited Liability Company status. Why don’t corporations pay the tax? Actually they do, it’s just called a different name.