Tax Obligations for Home Businesses

Nobody starts grooming because they love taxes. But ignoring them costs more than learning them.

What you owe:

• Federal income tax on your profit
• Self-employment tax — 15.3%
• State income tax (varies)
• Sales tax if your state taxes grooming

The surprise: First year you might owe $5,000-$10,000+ you did not plan for. Nobody withholds for you.

Rule of thumb: Set aside 25-30% of every payment for taxes. Do not touch it.

Get a CPA: Costs $300-$500 per year, saves multiples in missed deductions.