I have started a new LLC business in Ohio for which I have acquired multiple amusement vending machines (these are prize redemption machines e.g. claw machines) with the plan to lease space and start a route. I have been trying to estimate potential income per machine as well as future taxes, however, I am unable to determine the tax portion. I don't have very much experience with business taxes, owning an LLC, etc so please bear with me.
I am trying to negotiate a new account with a mall in my area. They would like me to pay $200 per month per machine in rent as well as a 40% break point percentage. There are also other fees that would be included with placing machines such as prizes, monthly insurance, replacing bill acceptors yearly, and general maintenance. These costs add up quickly.
So if I am to pay sales tax on the gross income of each machine, as I believe I am required to in my state, and I also pay tax on the net gains of the business and income tax on the money the LLC pays to me, I may never actually turn a profit. Is my understanding of the number of times I pay taxes incorrect? And are those taxes cumulative?