Question: How are small businesses taxed?Answer:
How your business is taxed depend on the legal structure you are using to run your business. If you are a sole trader, the money earned by the business is treated as personal income. Personal income tax is determined based on individual income brackets the highest of which is set at 48.5%. If you are running the business as a company, revenue is subject to the company tax rate of 30%. Speak to a small business lawyer to find out how you can reap the most tax benefits from your small business.