| Under the Small Business Tax Assistance Program is it true that a small business does not pay income tax?

Under the Small Business Tax Assistance Program is it true that a small business does not pay income tax?

Miskit asked:


Info here: http://lacity.org/finance/assistanceprogram.htm

I need some clarification. A friend of mine owns a small internet cafe with annual sales of less than $100,000. He thinks that this means he does not have to pay income tax. Can someone tell me if this is true or why it is not?

Thanks

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Comments

4 Responses to “Under the Small Business Tax Assistance Program is it true that a small business does not pay income tax?”

  1. Jess on April 12th, 2009 3:37 am

    I tend to think this should offer some explanation. “This program is designed to help small businesses complete their annual business tax renewal forms..”

    If a small business did not need to pay income tax why would they need assisstance completing their tax renewal forms?

    Your friend should contact the agency before he decides not to file and/or pay taxes. He also needs to be aware that he will still need to pay Federal taxes as well as State taxes.

  2. v b on April 13th, 2009 3:54 am

    Assuming he’s a sole proprietor, he gets a filing requirements as soon as his gross receipts are more than $8750 or his net earnings exceed $400.

    That was a looooooong time ago.

  3. wartz on April 14th, 2009 8:42 pm

    He is dreaming. He still may be right as a practical matter because a small internet cafe with sales of less than $100,000 is likely to be operating at a loss which would mean his NET income will be zero.

  4. Ruchi K on April 16th, 2009 8:19 am

    You may take assistance of Sahara Care House to get an answer to all your tax related queries in India please check

    Cheers