u/PrudentAcanthaceae88

I think taxes are making my business pointless even when it grosses six figures!

I run a service business that has grown pretty quickly over the last couple years and on paper the revenue looks solid. We are doing roughly mid six figures annually with decent margins.

But lately I have been struggling with the reality of taxes.

Once I factor in operating expenses and then estimate what I owe in taxes, it feels like such a huge chunk disappears that I start questioning whether all the stress of running the business is even worth it.

Some months I look at the numbers and think, How is the business bringing in this much yet I do not feel nearly as well off as I expected?

Part of me wonders if I am just looking at it wrong, misunderstanding how to think about profit versus owner pay versus retained earnings. Another part wonders if this is just the normal reality of owning a business and something everyone eventually has to accept.

For other business owners who went through this stage, did taxes initially shock you too? How did you mentally adjust to it, and did you eventually find ways to structure things more efficiently or think about the numbers differently?

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u/PrudentAcanthaceae88 — 5 days ago