answersLogoWhite

0

  • Small Business and Entrepreneurship
  • Salary and Pay Rates
  • Business and Industry
  • Budgeting and Forecasting

What was the average income for small business owners in 2005?

User Avatar

Wiki User

βˆ™ 2008-10-13 17:36:59

Best Answer
Copy

Salary.com did a survey in 2006 of business owners and CEO's salaries. The survey shows that the average income is around $233,000. Note that this salary is in fact under the threshold that Obama would raise taxes on, so Obama will not raise taxes on the average small business owner. Also, this survey defined "small" as having 500 employees or less which is fairly liberal and certainly not what most Americans think of as a small business. I believe this is incorrect:

I believe its $258,400.

"According to the survey, the national average salary for the CEO/Partner/Owner job function is $258,400"

I also believe Obama's thresdhold is $250k/$200k (Family/Single) An important note also is that 98.1% percent of small-business filers have income too low to be subject to either of the top two tax rates. Since the floor of these is below $250,000, then 98.1% of small business filers will not see any increase with Obamas plan.

http://www.cbpp.org/8-29-08tax.htm ---Incorrect Definition of Small Business--- The definition of "small business" used for that survey is actually too narrow. The small business administration uses various factors, including revenues, for determining what a "small business" is and these factors vary by industry. A small business is an concern that is organized for profit, with a place of business in the United States, and which operates primarily within the United States or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor. Further, the concern cannot be dominant in its field, on a national basis. Finally, the concern must meet the numerical small business size standard for its industry. SBA has established a size standard for most industries in the U.S. economy. The most common size standards are as follow: 500 employees for most manufacturing and mining industries

100 employees for all wholesale trade industries

$7.0 million for most retail and service industries

$33.5 million for most general & heavy construction industries

$14.0 million for all special trade contractors

$0.75 million for most agricultural industries About one-fourth of industries have a size standard that is different from these levels. They vary from $0.75 million to $33.5 million for size standards based on average annual revenues and from 100 to 1500 employees for size standards based on number of employees. Several SBA programs have either alternative or unique size standards, such as the Small Business Investment Company Program.

2008-10-13 17:36:59
This answer is:
πŸ€“
🀯
πŸ€”
User Avatar

Add your answer:

Earn +5 pts
Q: What was the average income for small business owners in 2005?
Write your answer...
Submit

Related Questions

What was the average income for small business owners in 2006?

According to Salary.com, the average income of a small business owner as of 2006 was $233,600.


What is the average net worth for small business owners?

ya mum


What are the different types of tax levy that small business owners should be aware of?

Small business owners need to be wary of taxes and both the state and federal levels. The majority of taxes are based on the amount of income generated by the business.


How does the health care bill effect small business owners?

small business owners can now get healthcare.


What is one federal resource that can assist small business owners?

One federal resource that can assist small business owners is the U.S. Small Business Administration


What is the average cost of small business insurance?

There is no actual "average" cost for small business insurance. The cost is dependent on your business's income, and therefore cannot be calculated without more information.


What is the typical salary for a business owner?

There is no "typical" salary since business owners range from making nothing to earning billions a year. Maybe you mean what is the average salary? Even that question will give you a wide range since business owners and business executives are sometimes put in the same category. Small business owners average less than 100K while business executives average around 200k.


What are the average tax rates for small businesses?

The "average" tax rates for small business owners is a meaningless number. Net income tax rates are dependent on many factors including business expense, payroll, depreciation and a large number of other variables. Any average number you did come up with would be meaningless unless the number is qualified by many factors, and then it becomes a different question.


What are the best softwares for small businesses?

There are various softwares that can be used by small business owners. Microsoft Office, as well as Quickbooks, can be used by business owners to help with their business.


Are there any special deals for small businesses wanting to install multiple windows on their computers?

Small business owners can often get credit or grants for business needs. Small business owners with the need for computer usage can get windows installed on their computers through Microsoft. Microsoft offers a small business package which is designed to minimize costs to business owners.


What describes Theodore Roosevelt's ideas about the role of the government?

To keep the powerful from taking advantage of small business owners.to keep the powerful from taking advantage of small business owners


What is the average electric bill for a small business?

What is the average cost of electricity per month for a small business?


What is the meaning of small business banking?

Small business banking provides products and services for the small businesses and their owners. Owners can get accounting help, bill pay and staff salaries through the help of the bank they use.


Are there free tax courses for small businesses?

Both Liberty Tax and the IRS offer free courses for small business owners. There is also a wealth of information available at the IRS official site for small business owners.


How are small business owners taxed?

If you are a small business the taxes you pay will be determined by the way your business is organized. There are basically three (3) forms of business entities, a sole proprietorship, an LLC (Limited Liability Company) and a corporation (S corporation and C corporation). Most small business owners are sole proprietors or single member LLCs. If this is the case then your business profits will be calculated on Schedule C and the final income number will then be transferred to your federal form 1040 and will be taxed according to your tax bracket. You can gather more information on this subject by seeking professional advice.


Who is Inc magazine's target audience?

Small/growing business owners.


What economic system was favored by small business owners?

The Free Market


Is cloud computing suitable for small business owners?

Cloud computing is suitable for anyone! Small business owners included. It does many great tasks that a simple computer can't do. It is very organized and helpful.


What is the average yearly income for CPA?

My stepdad is a CPA and he makes around 80,000 a year. He owns his own small business, where he is the only employee also.


If I visit sba.gov will I find information on Small Business?

Yes, you will. The SBA is the Small Business Administration, the Federal agency set up to assist owners of small businesses.


How is consulting integrated into small business?

Consulting is integrated into small businesses as many small business owners will employ consultants to assist them in making decisions. They may work directly for the business or be temporarily hired.


What is a small business club?

These are association set up so that small business owners can meet and discuss issues encountered, network and get information regarding opportunities for their business type.


Cost of small business insurance?

what is the average cost of insurance for a small business in Washington, D.C.?


What are micro-entrepreneurs?

Owners of a small business with fewer that five employees.


What did southern states do to limit reconstruction laws?

small business owners boycotted it