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If you claim 5 personal exemptions, your taxable income is reduced another $15 thousand to $23,500. Your income tax bill is most likely to be approximately 3200 dollars.
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What about when the business starts come up with a turnover? There are several decisions that could be made for your type of legal entity one can form, along with the tax ramifications differ also. A general rule of thumb through using determine which entity can save the most money in taxes.
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