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> At least in Finland entrepreneurs are taxed less than many full-time employees. It is true in high income levels that you can gain with tax planning, but I w
by enra 13y ago
> At least in Finland entrepreneurs are taxed less than many full-time employees.
It is true in high income levels that you can gain with tax planning, but I wouldn't say many are taxed less. Actually taxes/costs are pretty hurting for many starting entrepreneurs or small businesses.
If entrepreneur wants money out of the company (like for rent), she pays the taxes twice. Once as a corporation (28%) and then again as capital gains tax and/or as an income tax (+ all the costs that comes with employing yourself). Rule thumb for starting entrepreneurs that you need to make at least twice the money you want to make as an individual since taxes and costs the other half.
This is more of a case that wealthy individuals have more options and sometimes they use them and not about entrepreneurship. If you don't have a high income, you're probably paying more taxes(+costs) as entrepreneur than as an employee.
- nawitus 13y ago>If entrepreneur wants money out of the company (like for rent), she pays the taxes twice. Once as a corporation (28%) and then again as capital gains tax and/or as an income tax (+ all the costs that comes with employing yourself). Rule thumb for starting entrepreneurs that you need to make at least twice the money you want to make as an individual since taxes and costs the other half. An entrepreuner may be taxed the same way for his/her work as an employee is if he/she wants to. If he pays the income tax, I think that can be reduced from the corporation's profit tax just like any other corporation. There's also tax free possibilities up to 60 000€.
- rayiner 13y agoI don't see why the entrepreneur wouldn't just pay herself a salary to make rent. That would be deductible from the corporate tax as an expense.