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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29574
Experience:  Taxes, Immigration, Labor Relations
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I have a small business and am expecting US$400,000 from an

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I have a small business and am expecting US$400,000 from an overseas payment.
Can you tell me what percentage of business tax I have to pay on this amount for the year please. This will be my only income for the year.

HiCustomer Thank you for asking your question on JustAnswer. The other Experts and I are working on your answer. By the way, it would help us to know:

-How is your small business organized? Is it S-corporation? C-corporation? LLC? solo-proprietorship? other?

Thank you again for trusting us with your problem. Please reply as soon as possible so that we can finish answering your question.


Customer: replied 7 years ago.
LLC, I am the sole operator.

A single member LLC is not a taxable entity - all income would be passed to you and will be reported and taxed as self-employment income.


Here is a raw estimation of your tax liability assuming - you are single, standard deduction, do not have any dependents, no other deductions or credits, no other income, $400,000 is your NET self-employment income (after all deductions)

-- self-employment tax - $23,956

-- income tax - $110,645

Total estimated tax liability - $134,601


What might reduce your tax liability?

-- if you have any deductible business expenses - your NET business income will be less - and both your self-employment and income tax liability with be less;

-- if you have a retirement plan - you may make a contribution into that plan and that will reduce your income tax;

-- most likely you will itemize - and that will reduce your income tax liability.


Let me know if you need any help.


Edited by LEV on 7/5/2010 at 2:31 AM EST
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