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kattorney, Attorney
Category: Business Law
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Experience:  16 years experience with a concentration in business, corporate and contracts law
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I started and registered my LLC in the state of Texas in February

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I started and registered my LLC in the state of Texas in February 2012. I would probably made $50,000 revenue by end of dec 2012.
When should i file the taxes. What will be the taxable income? is it 30% of 50,000?
Is the tax applies on total revenue or on profit (total revenue - employee wages - office maintenance expenses)?
What if i could not able to make profit?
Submitted: 4 years ago.
Category: Business Law
Expert:  kattorney replied 4 years ago.

Kathie Russell :

Hi. thanks for the question. When you file your taxes depends upon the fiscal year you choose for your business. Normally, the fiscal year ends Dec. 31 but some companies choose a different fiscal year, for example ending June 30. That is up to you and your accountant to decide.

Kathie Russell :

Are you a single member LLC and if so, do you have employees? If you have more than one member OR have employees, you need a federal tax id number (FEIN). If you already have one of these, when you applied for it you had to specify when your fiscal year ended. If someone else applied for you, such as your attorney or accountant, ask them when your fiscal year ended. (Note, if you are a single member LLC AND do not have employees, you may not have gotten an FEIN and chose to just file taxes with your social security number.

Kathie Russell :

I will assume your fiscal year ends Dec. 31 since that is the most common. If that is the case, you must file your tax return by April 15, 2013 if you do not have an FEIN and file with your personal taxes. If you do have an FEIN, your tax return will be due by March 15, 2012.

Kathie Russell :

The tax rate depends - an LLC is known as a "pass through" entity. This means that any profits are taxed to you personally as income, and not separately as with a corporation. This saves you money because you only pay the taxes as income taxes, instead of having to pay double taxes - once for the corporation and once again for the money you personally make. So, whatever profit the LLC makes will "flow through" to you personally and will be taxed at whatever tax rate you are personally taxed at.

Expert:  kattorney replied 4 years ago.
Like any business, you are only taxed on your profits. Therefore, if your business brought in $400,000 in revenue but had $350,000 in legitimate business expenses, you would be taxed on the profit of $50,000. I hope this is helpful, please let me know if you have other questions.
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