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Aux ,

Ok, commenters here don’t understand how businesses work. So, let me explain it real quick.

If a company doesn’t trade publicly, then making profit doesn’t make any sense. Companies must pay taxes from profits, so if you make any profit, you will lose money.

Small example with made up numbers (as taxes are different in different countries). Your company makes £100 in profit in year X. Corporate tax is 10%. That means that you have to give £10 to the tax man and you’re left with £90 instead of £100. You just wasted £10 for no reason.

So what do you do instead? There are multiple options to get rid of profit and turn your hard earned £100 into something useful. And usually multiple things are done throughout the year. You can pay dividends to your private investors and yourself. You can invest money back into business and buy something useful like a new coffee machine, a laptop, some patents, etc. You can pay bonuses to your workers. And there are many other things to do.

Now you might ask why do taxes work this way? It’s actually a genius solution to an old problem no one has experienced in centuries - money hoarding. Current tax system forces companies to reinvest money into economy one way or another through natural greed of their owners. Because otherwise they would just hoard money and destroy the economy.

And here’s some fun trivia: if you own a private company and you have profit - you’re dumb. Well, it’s not fun actually, you should hire a professional accountant who will help you out.

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