Scrap Iron- That is an ignorant thing to think. I own a small business with three employees. Let's assume the business makes 100k. I pay two employees part time is roughly 20k. Then I pay my overhead...which is roughly 24k. I haven't added in what I spend on supplies, repairs or other. But, I must pay taxes on what was earned. Typically, if one is an LLP, it flows through the personal return. An S or C Corp not so much. And the way they pay taxes is no different from the individual.