What Percentage Does a Small Business Pay in Taxes?

In 2009, the Small Business Administration estimated that the average effective tax percentage rate for small businesses was 19.8% from whatever sources it derives income. This amount small business tax percentageincludes ordinary income, capital gains and excise taxes, but does not include sales tax, property, estate taxes or state income tax. Tax rates vary widely on federal income tax, so the more money your small business makes, the more it will pay in taxes.

While this generally answers the question: what percentage does a small business pay in taxes, it is only a good guide to determine the actual amount your business will pay.… Read the rest