I will be starting a single member LLC which will rely very heavily on referrals. If I am going to pay 40% of the sale cost as a referral fee am I taxed for the full cost of the sale ====>yes aslongas it is biz related ordinary and necessary exp; but you can claim 40% of the sale cost as a referral fee on your return.
or only the 60% that will be going to me? ======>So,you?ll actually earn 60% of the sale as the 40% of your referral fee ?ll be tax deductible on your Sch C and you need to issue him as a non employee, 1099 aslongas the amount $600 or more. |