I have a small business I opened around July and have net around $30,000. I am trying to get a financial advisor but everyone seems to be on thanksgiving break since last friday. As I understand it the IRS see’s Single member LLC’s as a disregarded entity and everything is taxed as personal income. So do you pay your personal income tax bracket rate, in addition to a small business tax rate?
I have a separate business bank account and have not taken any wages to date, however I am about to. My wife and I will fall in the 12% tax bracket as our joint income will be below $89,000 for the year. I am about to transfer $14k to my personal bank account as wages, but am trying to
I vaguely remember seeing that there is a small business tax of 18% on profits for sole member LLC’s. Does this mean I am taxed at 18%, and then an additional 12% on my wages that I transfer to my personal bank account?
You need to pay FICA taxes out of your salary.
I don’t think just sending $14,000 to your personal bank account is the best idea. So if you can wait to speak to your CPA, then do that.
You shouldn’t be speaking with a financial advisor about this unless they are a CPA or EA.