From the course: Running a Web Design Business: Defining Your Business Structure
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Amy's web design business as an LLC
From the course: Running a Web Design Business: Defining Your Business Structure
Amy's web design business as an LLC
In this video we'll explore Amy's business once set up as an LLC. If Amy sets up an LLC business in Florida there are several forms and fees she will have to file and pay in 2013. The I.R.S. doesn't consider owners of L.L.C.'s taxes S-Corporations self employed. Instead they are considered as employees of the company. This means that Amy will have to give herself a salary. In this example, she'll receive one paycheck per quarter. The year is divided in four quarters. Each quarter when she receives a paycheck she'll have to withhold and deposit taxes for federal income and for the Federal Insurance Contributions Act. Also known as FICA. FICA consists of two taxes, Social Security and Medicare. The current tax rate for Social Security is 6.2% for the employer and 6.2% for the employee for a total of 12.4%. The current rate for Medicare is 1.45. Percent for the employer and 1.45% for the employee. Or 2.9% total after each quarter ends, she must file IRS form 941. The employer's quarterly…
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