I got a quick question about how LLC companies are taxed. Do the companies get taxed on the total income or the total profit? For example lets say
$0-50k = 15% taxes and
51k-$100k = 25% taxes to keep things simple.
Now lets say my companies sources of income are as follows for a given year.
Affiliate Income = $70,000
Product Sales = $10,000
Advertising = $5,000
So the total money that has went into the company is $85,000 for the year, but from that $70k from affiliate income the actual profit is only $20k as we give back around 70% of our affiliate income for referring users to other sites & services back to the users in form of cash and prizes.
So the actual income is $35k and lets say after fees like ( licences, maintenance, employees ect) are paid the net profit of the firm is $25,000 for the year. So do i pay 15% of 25k in taxes or 25% of 80k in taxes?