More Tax Surprises.
I noticed this today:
Illinois charges most corporations a 1.5% “replacement” tax. Seeing as I will be taxed as an s-corporation I will have to pay that. Even if I stayed taxed as an LLC (technically “partnership”), they still charge the tax. They do say “Partnerships, trusts, and S corporations pay replacement income tax on an annual basis. No estimated payments are required,” which is worth noting. The same can’t be said for corporations.
So Illinois gets:
– 3% income tax on my “salary” and “distributed” income.
– 1.5% replacement tax on income minus “some” deductions.
– $250 a year to stay registered as an LLC.
– Unemployment tax/insurance (IDES) 7.2% to 0.8% on a $12,000 wage maximum.