like most businesses you earn between 5% and 15% profit before taxes. If it is 7.5% profit then you have $225,000 in taxable profit. The first $50,000 is taxed at the rate of 15% for all business as C corps. If you are using a pass-through then you are paying the same rate as simple income for every American. There have been zero increases in corporate tax rates since 1993 . There have also been zero increases in personal income tax rates since 2004 . There are however temporary decreases in payroll witholding taxes. So what taxes could have gone up by 16% as you say. BTW: My business has similar metrics but I always look for ways to build my business so as long as I invest in my business, my employees or future growth - that is all tax deductible, as is savings for retirements. And the IRS has special set aside rules for business owners to allow us larger deductions for retirement than average workers. Finally you should seriously learn about ESOP. As an owner you can convert the ownership of your business, for retirement planning, as a tax deduction - transferring the ownership to your employees allows you to take the money out as equity payments and that money can flow into other open market stock purchases to diversify your holdings without capital gains. This is the best way to turn a $3 million business into a wonderful asset for retirement. So if you are lucky