Question

Small Business LLC <8k Income for 2021 - Taxes Owed?

Forum|Forum|3 years ago
November 16, 2022
1 reply
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Hello,

I formed a small one-member home based LLC selling homemade duffle bags via the usual online websites, including my own. The business will gross an estimated $8k or less, for 2021. I cannot find a reputable resource that gives me a breakdown or a way to calculate Federal Taxes to be owed based on my figures. I will be filing as an individual, adding the profits onto my usual tax return as earned income, unless directed otherwise.

I am am on the side of caution, want to make sure I am not caught unprepared in the event that taxes might be owed after the figures are finalized.

Is there anyone that has a link that allows me to enter figures and get an accurate estimate that doesn't give the usual generic answers? Are there any tax breaks a small business like myself qualifies for that I am unaware of?

Thank you!

leeloo

You can prepare a fake return on TurboTax online and abandon it. Your profit is both federally taxable and as a Schedule C independent contractor you will also pay 15.3% SE taxes. You may take ordinary and necessary expenses against your income. You are also potentially eligible to take the QBI deduction.