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Get your taxes done using TurboTax
Hi ash-andersen,
That is a great question! Although your business may be registered as an LLC, unless you make an application with the IRS to be treated as an S-Corporation by filing IRS Form 2553, all net earnings you receive from your business flow directly to you and are subject to Federal Income Tax and Self-Empoyment Tax at 15.30%.
While I want to assume that you are a sole-owner of your business, an LLC can be treated as an S-Corporation for Federal and State tax purposes, and you would be required to take a reasonable salary for someone in your position and only be subject to federal, state and FICA withholding taxes as your own employee and as the employer for the other half.
Any remaining net earnings the business generates would be subject to Federal Income Tax as Ordinary Income.
Please review further how you can consider this option:
https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations
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