Question by Emily: I have a question about small business taxes regarding profits?
I have an LLC in California.
If I pay taxes on the first years profit, and what’s left of my profits rolls over to the next year do I have to pay taxes on them the next year also? Or is it just for the one year?
To be more clear, do I keep paying taxes on the profits from the years before or is it just each years profits are calculated that one year and only taxed that one year?
We have elected to keep it as a pass-through. We’re not filing as a corporation.
Answer by Tomk
You are only taxed on the amount of profit you make each year. You figure that on Schedule C of the 1044 and it has nothing to do with profits you made in prior years.
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