I am starting a consulting firm that will contract out workers to power plants for their expertise. I plan on having these employees classified as 1099 contractors. My question has to do with taxes. For example, I receive a contract from ABC company for $200k; $150k goes to the contractor (my worker), $5k goes to expenses, and I pocket the rest ($45k).

Since I initially get the $200k and pay out the $150k, and $5k is for expenses, am I taxed only for the $45k? And is that on an individual basis or does the LLC get taxed and then I get taxed on top of it?

Numbers would help greatly!

-Neil