1. What is the average percentage i will have to pay as self-employment tax and income tax?======>seca tax, Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals working for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. For self-employment income earned in 2017, the self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security I mean, old-age, survivors, and disability insurance, and 2.9% for Medicare ,hospital insurance.howeer yo can claim 50% of your seca tax on your 1040 line 27; the total net profit from all businesses is considered, but only the first $106,800 is taxable for Social Security purposes. Currently there are 6 income tax brackets, ranging from 10% at the bottom to 35% at the top. The tax bracket rates are categorized into separate filing statuses to reflect those filing jointly as married couples or qualifying widow or widower; married but filing separately; single filers; and head of household.so it depends on your taxable income; Once you report all of your income on the front of your Form 1040 (Lines 7-21, for a total on Line 22), you will then have the chance to adjust it. Using Lines 23-35, you can reduce your income with the help of contributions to qualified Health Savings Account and IRA plans, student loan interest, self employment deductions, and other expenses.
2. Do i have to register as a bussiness/self employed entity somewhere?=====>I think so; whether a self-employed individual needs a license depends on the state. Some states, such as Washington, require all persons who conduct business to have a license. Other states require only certain professions such as attorneys, doctors and teachers to be licensed. To determine if your current state of residence requires a license for self-employed persons, contact the secretary of state's office. This information can also be found on most secretary of your state office websites. Just as state regulations vary, local licensing laws differ as well. You need to contact the local county clerk's office, the city's business development department or the county commissioner's office to determine if a self-employed person needs to register the business locally.also you need to have EIN to open business account with a bank in your local area. So first you need to contact secretary your state office for more info to register with biz in your state.