I am looking at purchasing a service business in California that states it makes $160K in revenue and $120K in Net income. What Can I expect to net (estimate) after taxes with a LLC? Is it a 39% tax bracket?
Thank you so much for the information
Thomas since it's an LLC this income will typically flow over into your personal taxes. Therefore your tax bracket will be based on your total income which would consist of this income as well as any other income you make, interest, etc.
Based on these numbers I'm imagining when you buy it you will be the sole worker, no employees or anything like that. So if you bring in 160k and net 120k then there is 40k in expenses to run the business. If you put away a significant amount in retirement options you would probably pay taxes on ~100k. Probably pay ~30k in taxes on that.