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Business Financials - Profit and Loss - Reduce Taxes - Business Model ...
I am working on and looking for information to make tax time easier, and running a childcare business more successful. This is based on a Sole-Prop
Looking at if we need to reduce attendance to reduce income. Add more and add more staff for write-offs, etc.
I want to build an excel file for a 10,000 ft overview of what it looks like running a child care biz, what to expect, how to reduce costs..
example:
6 kids @ $1500/mo (California, and this is about avg for our area, some places are around $2000/mo full time!)
Income: 108,000
Wages: 30,000 (cant afford full-time staff, this is a combo of staff and our children. Your children can make up to $12,000 a year tax free for work they do for the daycare, modeling on the website, ads, etc)
Deductions: 20,000 (In Home daycare, supplies, meals, etc)
Net income: 58,000
Taxes about 20% (11,600) (Ouch!) We have to pay about 15% SE (Self-Employment Tax, Income Tax, State Tax)
Take Home: $46,400
Per Hour: $22.30 (2080 hours full time employee) [$17.85 Real per hour we did about 2600 hours last year based on Time % ]
Besides some of the benefits of split utilities, etc. Its doesnt seem to be as profitable as it should.
On this spreadsheet, I would like to compare Sole-Prop vs S-Corp, etc.
Has anyone else found out what is a better business model? For all the hard work and for the GovMent to take so much. To make so little per hour, its getting tougher and tougher.
Looking at if we need to reduce attendance to reduce income. Add more and add more staff for write-offs, etc.
I want to build an excel file for a 10,000 ft overview of what it looks like running a child care biz, what to expect, how to reduce costs..
example:
6 kids @ $1500/mo (California, and this is about avg for our area, some places are around $2000/mo full time!)
Income: 108,000
Wages: 30,000 (cant afford full-time staff, this is a combo of staff and our children. Your children can make up to $12,000 a year tax free for work they do for the daycare, modeling on the website, ads, etc)
Deductions: 20,000 (In Home daycare, supplies, meals, etc)
Net income: 58,000
Taxes about 20% (11,600) (Ouch!) We have to pay about 15% SE (Self-Employment Tax, Income Tax, State Tax)
Take Home: $46,400
Per Hour: $22.30 (2080 hours full time employee) [$17.85 Real per hour we did about 2600 hours last year based on Time % ]
Besides some of the benefits of split utilities, etc. Its doesnt seem to be as profitable as it should.
On this spreadsheet, I would like to compare Sole-Prop vs S-Corp, etc.
Has anyone else found out what is a better business model? For all the hard work and for the GovMent to take so much. To make so little per hour, its getting tougher and tougher.
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