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Which means immediately higher taxes because you get to pay the employer side of payroll taxes, plus no pretax benefits like health care and no vacation or othe
by ckinnan 9y ago
Which means immediately higher taxes because you get to pay the employer side of payroll taxes, plus no pretax benefits like health care and no vacation or other untaxed benefits.
- tdfx 9y agoYou can elect to have your LLC taxed as an S-corp to avoid some of the self-employment tax [1]. 1. https://www.thebalance.com/what-is-a-reasonable-salary-for-an-s-corporation-officer-397939 https://www.thebalance.com/what-is-a-reasonable-salary-for-a...
- hippich 9y agothis applies to the certain degree.. if you make less than FICA threshold - yes, you are right. If you make more from multiple contracts/jobs - it is more efficient to be paid as contractor (assuming that client will pay you your employee taxes share, which would otherwise be paid by employer in case of W-2 employment)