how much taxes would i pay if i have $56,000 net income after subtracting expenses.?

Question

i am doind to business plan for my college class and i decided to do it on a truck driving company. i am almost finish but in the balance sheet there is an area where you subtract your taxes from the net sales. how much tax would i have to pay if my net sales are 56,000. i live in texas

Answer 1

You need to tell us what the entity is to properly answer that question. Are you a C-Corp, S-Corp, LLC, Sole Proprietor?

If LLC or Sole Proprietor Bostonian is correct except that the self employment tax (SET) would be 7,913 not 8,568. The computation for SET would be 56,000*.9235*.153. Bostonian forgot to multiply the net income times .9235. You can confirm this by working through the form called schedule SE.

If an S-Corp you do not pay self employment tax on the net earnings, but you would need to have a salary. Take Bostonians number without the self employment tax

If a C-Corp you have graduated rates which can be found in the instructions to Form 1120.

Have you, or maybe you don't need to, consider state tax as well? Texas now has an entity level tax for some forms of business that begins in 2007 or 2008.

Answer 2

Assuming you're a single taxpayer and take the standard deduction, you'll pay about $8,568 in self-employment taxes plus about $7,156 in income taxes for a total of about $15,733.