If an S corporation brings in $75,000, and out of that $75,000, the owner can pay herself an income of $40,000; she pays 15.3 percent of $40,000, or $6,120. If a sole proprietor’s business profits total $75,000 for 2015, he pays 15. three percent of $75,000, or $11,475, for social Security and Medicare. But, in brief: If you’re by and large looking for tax simplicity, a sole proprietorship or partnership is a good bet. Since tax filing is a lot more complex
Month: May 2022
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