Michigan Tax Rate?

[Rustinm]

Hello, i was just trying to figure out my aproximate net for when i get all of my machines out and i was wondering if someone from michigan could tell me about what the tax percentage is on bulk machines. I have no idea because ive never owned a business before and i have no idea what to expect other than i expect the government to sqrew me like they do to everyone.

Thanks

Rustinm

[alyssamma]

Rustinm, there is no special tax rate on vending machines anywhere. You'll pay taxes based on your income and it will be on a sliding scale.

There are some *local* taxes which might be a flat rate - this will depend on where the machines are physically located.

You might pay *sales tax* to the state which, again, will be a flat rate.

But state and federal income tax will be on a sliding scale. Unless you have formed a C-Corp your vending income will pass thru to you and be reported on your 1040 like all other income. You'll then pay state and federal taxes just like you normally do

Kevin