I need help understanding how it works when one opens an LLC in the United States, funds its activity from a job he or she does. For example the individual earns 200,000 dollars in a day job and pays 30% federal income taxes, but when she opens a business and funds about 20,000 dollars a year from her net income, what happens during tax season?
How can she claim deduction assuming she uses her phone bill of 100$ a month, home office of 100 sq feet, car for business purposes cum job purposes 50%-50% basis 200% gas/month and 500$ car loan per month. She travels in flights for business trips 4 times a year paying 500$ each trip. She pays her mortgage of 3000$ on her 2000 sq foot home but uses a home office room of 100 square feet for the LLC
She barely made 1000$ the first year from her business.
Second case is she makes exactly 20,000 dollars from her business and breaks even. What kind of taxes does she pay?
Who to calculate what she can write off? What happens to the 30% federal income tax on her day job income ? Does it get reduced? Im trying to learn doing the math and not just use an online tool. Thank you.