Comment on Node ant

Mark Brody — Wed, 15 Oct 2008 17:58:09 -0400

As a small business owner needing to hire more people on a regular basis, I can tell you that there's a huge misconception on what the IRS actually taxes me on. I take home FAR less than than 250K/yr and I reinvest back into my company to grow it (and hire more people). S-Corps, LLC's, and Partnerships are not taxed by the federal government. Instead, any profits made for a tax year - including the reinvested dollars - show up on my tax return as "Income from Business". So, if the company makes a profit and uses it to recruit and hire more employees, I pay taxes on it.