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We have a consulting firm for international clients,, they…

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We have a consulting firm...
We have a consulting firm for international clients, , they usually incorporate in the USA mostly in the state of Florida for small to medium investments. With the new reform, what is the exact percentage of taxes they are subject to forming a CORP or LLC?
Submitted: 4 months ago.Category: Tax
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3/15/2018
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 4 months ago
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,607
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
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Hello!

My name is***** will assist you today.

Please give me one moment while I review your question and type my initial response

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Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 4 months ago

As an LLC, the clients will be taxed at their individual income tax brackets. For example a married tax payer who owns a LLC would be taxed as follows.

Married Filing Jointly

$0- $19,050 10%

$19,051 - $77,400 12%

$77,401 - $165,000 22%

$165,001 - $315,000 24%

$315,001 - $400,000 32%

$400,001 -$600,000 35%

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Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 4 months ago

C Corps are taxed at a flat corporate tax rate of 21%.

Please let me know if this has answered your question or if you have any additional questions.

When you have no further questions a positive rating of 5 stars is much appreciated.

Thank you!

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Customer reply replied 4 months ago
lllc has self employement tax?
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 4 months ago

LLC's that do not choose to be taxed as an S Corp does pay SE tax

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Customer reply replied 4 months ago
what about is a single member llc ? disregarded entity
Customer reply replied 4 months ago
when the llc choose to be taxed as c corp? we pay taxes as 21%?
Tax Professional: Barbara, Enrolled Agent replied 4 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,361
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Different expert here - my name is ***** ***** I will be happy to assist you since you requested a different expert.

An LLC that does not elect partnership, C corporation, or S corporation status is considered to be a disregarded entity. An LLC does not file its own tax return. If the LLC is a single member, the taxpayer reports the income and expenses on his personal tax return (Form 1040).

If the LLC chooses to be taxed as a C corporation, the corporate tax rate of 21% (effective 1/1/18) applies.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Customer reply replied 4 months ago
whats the percentage paid by a single member on LLC? do you have the breakdown? in case of 1099 I am subjected to SE tax right? making almost 30% in taxes?
Tax Professional: Barbara, Enrolled Agent replied 4 months ago

A single member LLC is subject to the individual tax rates.

The following link contains the individual tax rates:

https://taxfoundation.org/2018-tax-brackets/

A single member LLC will also be subject to SE tax on net income, but will receive a credit for 1/2 of the SE tax on Line 27 of Form 1040.

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