Can You Still Call Yourself a Small Business Owner?

You’re a small business owner…or are you? The Treasury’s Office of Tax Analysis Lawmakers is working to narrow the definition of small business owner.

A small business owner is characterized by their economic dependency on their business.  Until now a small business owner was anyone who had a profit or loss from their company.  According to the new definition you are a small business owner if the profit or loss of your firm accounts for 25% of your income.

Using the old definition the Treasury reported 34.7 small business owners with a net business income of $662 billion.  It is unclear how drastically this number will drop with new standards.

If you consider yourself a small business owner make sure you are aware of these new conditions and how they will affect the taxes you pay.

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Posted on August 10, 2011, in Uncategorized. Bookmark the permalink. Leave a comment.

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