If you own a growing, unincorporated small business, you may be concerned about high self-employment tax bills. The SE tax is how Social Security and Medicare taxes are collected from self-employed individuals like you. Self-employment tax basics The maximum 15.3% self-employment tax rate hits the first $168,600 of your 2024 net SE income. The 15.3%
The IRS recently announced various inflation-adjusted tax brackets. Here’s a rundown of the amounts that are most likely to affect small businesses and their owners. Rates and tax brackets for small businesses If you run your business as a sole proprietorship or pass-through business entity (LLC, partnership or S corporation), the business’s net ordinary income
LLC members commonly claim that their distributive shares of LLC income aren’t subject to self-employment tax. But the IRS has been cracking down on LLC members it claims have underreported SE income.