Forum Moderators: martinibuster

Message Too Old, No Replies

TAXES for US firms

         

Mentat

10:06 pm on Aug 27, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



I want to know if it's more profitable to create an US firm to manage my US affairs.

The problem is that i dont know what is the tax level.
What procent from my google adsense income will reperesent the taxes?
I want to create a LLC in boston

hyperkik

1:37 am on Aug 28, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



LLC's usually have pass-through taxation, which means that the profits would be passed through to you to declare on your personal income tax. While that could mean that the LLC takes your business deductions as expenses before passing the profits on to you, it doesn't seem like there would be a net benefit.

You may be able to opt to have your LLC taxed in the manner of a C Corporation, in which case you would pay corporate income tax on undistributed profits. You can do a search for "corporate tax rates" to find tables for the state and federal corporate taxes that would apply. You could then distribute the profits, which would be taxable as income to you, so.... ouch? The better way to distribute the income would probably be as a salary, so as to avoid double taxation, but then you would have to deal with payroll tax issues.