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.