Question by kazim Demir: I am starting a home based business as well as i am a full time employee in Houston, do i have to pay tax?
I am starting a home based business as well as i am a full time employee in Houston (it will be LLC), do i have to pay SSN and unemployment tax and health care since i do pay from my current employer? or what can i do for reducing tax or eliminating these tax?
Thank you in advance
Answer by the tax lady
An LLC is disregarded by the IRS.
Your home based business will be reported on a schedule C.
Each dollar of net profit will be taxed HIGHER than what you are paying through work as you will now pay the same taxes PLUS the employer’s share of fica/mc.
You are not currently taxed on unemployment (that is not an employee expense). Healthcare is not a duplicated expense.
What do you think? Answer below!