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Hello everyone. I’m new to the site and I’m also a new business owner. I’ve really been struggling with trying to figure out how to factor in my self employment tax into my bids. I’m a sole member LLC operating in upstate New York. Now when you guys factor in a bid do you add the 30 percent for self employment tax on top of your labor and materials or just your labor. As I live in New York I also have to add in another 8 percent for sales tax. I’m just trying to figure this out so I can keep my bids competitive and also not screw myself at tax time. Appreciate any feed back. Thanks
 

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We don't have LLCs in Canada. But is it like a corporation? Are you technically an "employee" of your company?

My advice is to pay yourself as if you are just an employee, not the owner of the company, until you figure everything out. This means deducting taxes off your pay each pay period, as if you worked for anyone else.

At the end of the year, try not to leave much (if any) money in your company bank account. This way, when your company pays its share of the taxes, you will see how it all balances out.

For bidding on jobs, figure out how much you want to make before taxes, say $30/hr, and then add on any extra costs associated with running a business. Here in Canada, that means WSIB, cpp, and ei. (I'm ei exempt, as the owner). You'll likely see a figure closer to $40/hr. Don't add on anything but the payroll costs. Keep material and other operating expenses separate.

That's all I got. I don't know what LLCs do or how new York taxes people. :p
 

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Hello everyone. I’m new to the site and I’m also a new business owner. I’ve really been struggling with trying to figure out how to factor in my self employment tax into my bids. I’m a sole member LLC operating in upstate New York. Now when you guys factor in a bid do you add the 30 percent for self employment tax on top of your labor and materials or just your labor. As I live in New York I also have to add in another 8 percent for sales tax. I’m just trying to figure this out so I can keep my bids competitive and also not screw myself at tax time. Appreciate any feed back. Thanks
My hourly rate assumes those costs, then I can bid based on time (some suggest bumping that price up about 20%).
If the hourly doesn't cover that, one can consider raising the rates accordingly.

I like whatever is easiest and I feel comfortable with, because things tend to get complicated no matter which way its done.
 

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your labor rate should be $50 pr hr minimum

Here in California,probably as in New York,the State is Hostile to small business,taxes are outrageous and going to get outrageouser now that we;ve got King Corn Pop making all these Presidential Decrees all over the place

You might want to consider going underground with everything,cash is king,while its still around which probably wont be for much longer
 

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For a project this scale, I would suggest an accountant.
Have fun with it...hope it works out.
 

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your labor rate should be $50 pr hr minimum

Here in California,probably as in New York,the State is Hostile to small business,taxes are outrageous and going to get outrageouser now that we;ve got King Corn Pop making all these Presidential Decrees all over the place

You might want to consider going underground with everything,cash is king,while its still around which probably wont be for much longer
surprised you didn't get a warning about the "political" post.
 
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