From Small business to Large business. Where does it change?

Kenneth Queener: Hey, it is shining in Dallas today.That's a funny question you have. Some of us small business people often wonder who the small businesses that are getting tax breaks are. The only true 'small business' is one that has less than 2 employees. That is considering of course that a couple are married and work together. i.e. the only true small business is one in which the proprietor does everything themselves.The confusing tax structure is generically based on number of employess as one set of definitions to satisfy 'small' or large business. Income/sales are another one. Many of the tax laws refer to 12 employees for one thing. Other laws are based on 50. Some laws are 500. Then it gets real complex, considering number of sites or 'offices'. It gets weirder in some cases how far apart are the numbers of people.The people who write the federal tax codes go out of their way to make it confusing to you, and to leave enough wiggle room so a creative CPA can sav! e his company.To answer your question in short: the spirit of the idea of a small business, in regards to taxes only, is less than 12 employees and less than 2 million in gross business.All of the politicians running around talking about 'small business' tax breaks are not well versed on what they are talking about anyway. They'll say 'I support that bill, it gives tax breaks to small business." Well if you look at the thing being discussed it might say something like "increase deductable per cent for the second 2 million in traded goods done with under-privileged and favored textile producers" So first off, how many 'small businesses' are doing 4+million in business? Some. Sure. But...how many small businesses are doing 4+million in business with 'under-privileged and favored textile producers"? under-privileged and favored would be companies based in Haiti, I think costa rica has favored textile status and I think Honduras does until the end of this year. So They are cre! ating a tax break for small business. uhm, any small business ! doing 4+million with a single producer from Haiti? hm....(this is just an example for how out of touch everyone, not just politicians, are on what a small business is. How these buzz words have been thrown around and morphed. I know of no tax breaks on 4million. I do know the countries listed, particularly Haiti do have 'favored textile status') The answer got long. Im sorry I coulda just said "no one knows." LOL...Show more