POLITICS Fun Tax Data!

With taxes:

You work 60-70 hour weeks, get no sleep and make $150 and pay $50 of it in taxes.

Without taxes:

You work 60-70 hour weeks, get no sleep and make $100 and pay $0 of it in taxes.


And yes, you would have to only charge $100 for your work because someone else will. You don't get to keep all that fat $50 because someone will price you out and still make money.

It is just how societies work, and yes, I am not a business owner and do not have the make up to be one (I don't like 60-70 hour weeks and sleepless nights), but you get into business knowing this is how things are. Or at least, I hope you do.

I am not trying to be a jerk, I just don't understand the mentality of it, and probably never will.

 

I assume this would also happen, even without taxes?

 

There's a fairly large contractor here that is doing around 20 million in work. He's paying close to 2 million a month out.

You do the math, it's not sustainable.

 

Like Musk. Great idea man, but really needs a COO or someone else to actually take the idea and make it into a business.

 

Nope, cause eventually the banks come and say "you can't have any more and we want what we've loaned you".

 

Probably, but when 30% of what you pay out a month is taxes, it accelerates the downfall

 

One of the smartest guys I've worked with was smart enough to know he didn't have the first clue about what he was doing and stayed out of the way.

Black guy, was approached by a guy to be the "majority partner" in a business that did a lot of contract work in OR. The white guy had the knowledge and contacts, told the other guy just sit back and make money by being the reason we can get these contracts.

He did well by not doing a single thing.

 

I spend 10-20 hours a week doing things that Someone else would do in a large company - HR, payroll, compliance, tax reporting, etc. It’s more cost effective to do these things myself rather than hiring someone or paying third party and I don’t make $150/hr doing it. For instance, I don’t make a penny on the 100k or so I collect in sales taxes for the state and local govt. But it better be on time.

 

so here is a question which might be more complex(or maybe even less) than I think it is: Why is sales tax not figured into the price on the tag in brick and mortar stores? I understand the marketing/psychological angle(i.e. $3.99 is more attractive than $4.36) but is it straight up just because it's not required? Or are there legitimate accounting purposes for separating it out

 

But if you're just starting out. It's hard to afford to pay someone else to wear all of these hats for you.

That's also exactly what the big players want. They already have accountants and lawyers on their pay role.

 

3.99 sounds better than 4.36 and and no, it's not required. You are welcome to include it in price if you so choose, but I don't know of anyone who does.

 

figured as much

thanks

 

When you go into business, you soon find out that there are a horde of taxes to pay. They people sit like vultures on tree limbs, just waiting for some animal to die so they can swoop in and consume it. Occasionally they will flap one wing a little or move their head a little sideways, but mostly all they do is sit and wait. Because you are on the menu.

Same with the taxmen. It makes you wonder if it is worthwhile.

 

And the whole time, you're thinking, what did I miss?

 

Also, you want to add insurance stuff for fun?

 

A lot of businesses don't even make enough to pay the owner the first year or even beyond. So there's not any cash to pay an accountant.

And writing a check for a new frontloader means you get to enjoy a new frontloader. That's also at least has some value. Like if the business tanked, you could sell that.

 

Here's my situation, I'm not trying to make millions with my business, I make just enough to be a pain in my ass. I'm set up as an LLC, so my profits, as I understand it just get reported as income at the end of the year, but like Card said, there's 100 other taxes I need to worry about. So, i have an accountant for my personal taxes, but i don't make enough to justify having an accountant yet. A friend recommended that business program, quickbooks I think.

 

Workman's comp or general liability or auto/equipment or disaster or theft or....

 

So why do any of you guys want to run your own business? I guess the same reason I want to own my own home when renting doesn't have any of the headaches of ownership?

 

Do you have employees for the side business? Are you purchasing/selling materials or labor/service only?