If filing your small business taxes yourself becomes too complicated or confusing, it's advisable to consult with a professional the first time so you'll understand all of the steps and documentation needed. Step 1. Gather each tax form you need to fill out for the type of business you own.
Definition of profit sharing. : a system or process under which employees receive a part of the profits of an industrial or commercial enterprise.
Pros and Cons of Employee Profit Sharing. Profit sharing is an example of a variable pay plan. In profit sharing, company leadership designates a percentage of annual profits as a pool of money to share with employees or a portion of employees such as executives. The pool of money generated is then divided across covered employees using a formula for distribution. This formula can vary from company to company.