Originally Posted by
Lazyyrogue
I don't care if they're paid more than me, i never said i cared, i just said its unrealistic. Lets use some basic math real quick shall we, lets say company A, a dance studio that teaches "lesbian dance" or what ever, and they earn, as a company, $1,000,000 a year!
Pretty good right? So, lets break it down.
First off, they're a smaller business, no dodging them pesky taxes, the corporate tax rate for a $1,000,000 earning company is 34%, so now their revenue is down to $660,000, not bad right?
The company rents a studio, seeing as they're a smaller business, they couldn't simply issue the corporate bonds to build a facility. Since they're located downtown, they're rent is slightly premium, costing them around $20,000 a month, this totals at $240,000 a year.
Now were down to $420,000, but wait! theirs more! You better believe they need to pay for utilities, that will easily come in at $10,000 a month, then you need phone lines, internet, probably cable for some tvs, so you're pretty close to $15,000 a month, totaling close to $180k a year.
Now were down to $240,000 in revenue for the business, lets say well chop about 60k off for overhead, and were down to $180,000 in revenue to pay some wages out, and save for expanding the business
Lets say we save 40k, and decide to pay 140k out in wages, we have 3 instructors, 3 front desk staff, and the owner, you would probably pay the desk staff 15k a year, the instructors 25k, and use the rest to pay yourself.... Starting a business and paying people isnt as easy and profitable as some of you make it out to be.