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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15581
Experience:  15years with H & R Block. Divisional leader, Instructor
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Background: I'm currently in NYC where I'm employed by a

Customer Question

Background: I'm currently in NYC where I'm employed by a corporation and get a W2 from my employer but want to set up an LLC(registered in FL) that will do online work as a side business. I want to send work to be completed outside of the US by people that are not US citizens. The people that will do the work will do so on their own schedule and with their own equipment. The end product will be a digital product sold online.
Questions:
- Do I need to complete two tax returns? One for "personal" the income reported on the W2 and one for the LLC?
- Will the LLC income impact my personal income? i.e. if I get $100K paid and reported in my W2 and make 10K profit before tax from my side business, how will that extra 10K be taxed?
- Would the people I send the work to be labeled as independent contractors or just a business expense? would they need to pay taxes in the US if the aren't US Citizens and if they are not working, nor living in the US?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 1 year ago.

Do I need to complete two tax returns? One for "personal" the income reported on the W2 and one for the LLC?

A single member LLC would be reported on Schedule C and the Schedule attached to your 1040 as business income. You woudl need the additional form but it is not a separate return.

Will the LLC income impact my personal income? i.e. if I get $100K paid and reported in my W2 and make 10K profit before tax from my side business, how will that extra 10K be taxed?

The NET income (profit) from your LLC business will be added to your income and taxed along with your wages (W2).

You will also have Self Employment tax to pay on the NET if you have $400 or more in NET INCOME.

Would the people I send the work to be labeled as independent contractors or just a business expense? would they need to pay taxes in the US if the aren't US Citizens and if they are not working, nor living in the US?

The non US workers can be independent contractors and that is an expense on the Schedule C.

Non US persons not present in the US are not taxed by the US. You would need to secure a form W8 BEN form each of them to show they are non US persons and not subject to withholding.

Please do not forget or ignore to give a positive rating (look for the STARS or SMILEY FACES). It adds nothing to your costs but it assists me.

Expert:  Robin D. replied 1 year ago.

Hi, I wanted to check back and see if my answer was helpful to you.