Hi I was wondering how to calculate all the taxes you anticipate owing based on what your NOI.
First I did it as sole proprietorship and assumed that it would be taxed at personal income tax rate.
It came out to 42.15% $210,771 with take home pay of $289,229
I know there’s a self employment tax of 15.3% for SSN and Medicare, which looks like federal to me. Is there also a self employment tax in California that is also 15.3%?
I tried doing a hypothetical scenario of 500,000 after expenses for an LLC as well.
Net Income $500,000
Franchise Fee $800
Additional Franchise Fee $2,500 (500k-999k)
Federal Tax $76,500.00 (15.3%)
Net Income After Taxes $420,200
At first I thought wow what a drastic difference but it looks way too good to be true- but then I read that if the income is distributed to you afterwards, it will be taxed as personal income? So do I take the 420,200 and use the personal income calculator to calculate taxes on that AGAIN?