If i make 100k in my first year, in sales, which for a new guy is probably impossible, then write off say 40k… Im at 60k profit, for just me, paying 44.3% I make $33,400?
$2,700 a month?? I cant even survive on that, and I have to pay my own healthcare on that?
How did you guys survive your first year? 22-24% + 15.3% seems way over the top to me.
I should refrase, your healthcare gets written off, but I have to save for that medical expense that you never know may occur… and retire someday!?? Im in this for the long run.
Profit first. Read the book.
Talk to a cpa. Don’t know where you’re coming up with your tax numbers. Might want to cut down on your expenses before starting business or have enough saved to make it thru a year or 2 or have another job which many on here do and start off part time.
Your better off working for someone else with those tax rates. That’s burglary.
What do you mean “write off $40k”? Are you saying you’re going to be spending $40k in equipment and supplies to make $100k? Or are you saying you’re going to pay 40% in taxes at the end of the year?
Also what do you mean by paying 44.3%, is that your tax bracket or are you saying you’re going to put 55.7% of your net profit back into the business?
Get a good cpa. I pay fewer personal taxes than Trump (as in none), and still get a nice return. Grant it, I take a draw instead of paycheck. Probably gonna get flagged by the gubbamint for that lol!
Thanks for all the replies, I think I should actually be expecting to pay around 22-25% in my taxes, thats on profit on anything less than 185k.
With that being said this will be my first year in business on the books, doing it for insurance, licensing, and legitimately growing my business as well as holding a bond for big work.
I expect to spend a lot of money next year, primarily on a hot water machine, sirocco water recovery, 3m fall protection, another enclosed trailer and a cutaway van or box truck under CDL weight, I want to sell a lot of commercial work that is recurring and get a crew running that hopefully around 2022-2023, while im out on residential or doing sales and marketing, but thats all want, not done.
Off the books right now as my marketing and operating costs are a little high for me to be comfy, and I need to buy all those things to operate to where I want, but i will start the year off cold water 4pm, and I want to write all that stuff off next year, so Im gonna be the cash guy for the next few months just doing driveways with no chems, for a good price.
So hopefully I don’t sound like too much of a story telling idiot, SAY I made 100k in sales, spent 30k, and I got 70k left, I shouldn’t pay a crazy amount in tax it sounds like, definitely gonna get a good CPA.
Live below your means, that’s all I can say.
Takes time is all I can say. My gross each year seems to double. With expenses becoming less and less.
Next year will be different though, expenses will be going up dramatically, hopefully income does the same.
Wow surface, that is motivating to say the least.
Do you mind sharing why your expenses will be way up? Are you going to be investing more into the company or are you anticipating something that I’m not aware of?
Adding a location. Rent on office/shop is almost 15k a year, additional employee, lots of marketing in new area, utilities, etc.
Awesome, congratulations!
No congrats yet. Makes me awful nervous!
Good grief, what the heck. I’ve been PW two years and still only have my little 5x8 trailer. Too much too soon.
All my competition are big ballers, and doing commercial requires reclaim and hot water around here, they all have these setups.
Just gotta feed the beast with decent sales.
Where are you located ?
Portland Oregon
Portland 
you should focus your advertising on fire damage and removing human waist from the streets . No shortage of that needed .
