Tuesday, August 12, 2008

More Tax Surprises.

I noticed this today:
http://www.revenue.state.il.us/Businesses/TaxInformation/Income/subchapters.htm

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.

References:
http://tax.illinois.gov/Businesses/CA-2007-02.pdf
http://tax.illinois.gov
http://www.revenue.state.il.us
http://www.revenue.state.il.us/taxforms/Incm2007/Business/SmallBusiness/IL-1120-ST.pdf
http://www.revenue.state.il.us/Businesses/TaxInformation/index.htm

Comments are closed.