Wholesale Fee Taxation

[Josh Corby]

Hey Guys, quick question regarding the taxes I will pay on wholesale fees. 

I plan to have a separate SMLLC for my wholesale business. This LLC will be taxed as a sole proprietorship starting out. What are all the tax rates I will have to pay on these wholesale fees? Would this be considered a capital gain and therefore taxed as such? Will I just have to pay Self-Employment tax and Federal Income tax?

Thank you guys so much!

[Ashish Acharya]

Originally posted by @Josh Corby:

Hey Guys, quick question regarding the taxes I will pay on wholesale fees. 

I plan to have a separate SMLLC for my wholesale business. This LLC will be taxed as a sole proprietorship starting out. What are all the tax rates I will have to pay on these wholesale fees? Would this be considered a capital gain and therefore taxed as such? Will I just have to pay Self-Employment tax and Federal Income tax?

Thank you guys so much!

It's an ordinary income tax subject to self-employment taxes. If you are going to make decent money, talk to your tax advisor on S-Corp Election.