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.
Profit sharing plans are established by employers and only contributed to by employers. Contributions are voluntary and discretionary. Withdrawals are taxable income, and an additional 10% tax penalty may apply for distributions before age 59 1/2.