A fair profit for a small business is between 9% and 37%.
Taxation of Sole Proprietorships
Sole proprietorships are taxed at the individual level. However, since a sole proprietor is not employed by the business, the taxation of sole proprietorship includes two types of taxation: income and self-employment.
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.