If I put only my sweat into my internet startup and sold it 2 yrs later for $100m, How much taxes would I pay?
I am trying to figure out the capital gains taxes when you start a business (E.g. a dot com or any small business). Assume that you put your sweat into the business etc… and got other investors to invest in the company. If I sold my company for $100m 2 yrs later and my share of the company was 50% or $50m at the time of exit. How much taxes would I have to pay on my share? And after taxes, how much cash would I have left over to party with?
it depend on how good of an accountant you have working for you.
I think that question is not quite so important and your taking action to create and grow the company.
You would have plenty left to party with.
First get the money then you can hire a great accountant to help you keep as much as possible.
You would certainly have had some expenses. But if you were fortunate enough to do something like this, you’d want to have a good accountant from the time you started up until after you sold – that person would advise you.
If you sold for $100M, you’d pay a ton of taxes even on your 50%, but have more than enough left over to party the rest of your life.
Is this clear $50M Gross income from the sale in cash? or some other form?
If I pulled a rabbit out of the bum would i be coco for cocoa puffs?
You’ll pay a lot of taxes. So much that it almost isn’t worth starting the business. That is the way taxes crush business.
Just get a job at Wal-Mart or MickeyD’s You’ll feel a lot better at tax time.