What is the tax rate for small business owners?

In California, the tax rate for small business owners depends on the type of business they own. For individuals, such as sole proprietors or single-member LLCs, the income tax rate is 1 percent of their total taxable income. Partnerships, S-Corporations, and multi-member LLCs are subject to the state’s Franchise Tax, which is a flat rate of 8.84 percent of their total taxable income. For corporations, the state income tax rate is 8.84 percent of their total taxable income. In addition to state taxes, businesses may also be subject to local taxes. Depending on the county, cities, and special taxing districts, businesses may be subject to local income taxes on their net income. For example, in Los Angeles County, businesses may be subject to an additional 1.5 percent income tax rate. It is important to note that businesses may also be liable for other taxes such as payroll taxes, sales taxes, and property taxes. Depending on the business, owners may be subject to other taxes as well. For example, businesses that sell alcoholic beverages may be subject to an excise tax. Overall, the tax rate for small business owners in California varies depending on the type of business, the locality, and other factors. It is important that business owners are aware of the applicable tax rates and obligations in order to comply with state and local laws.

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What is the tax rate for small business owners?

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