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I'm torn, trying to figure out if I should actually create a company or just keep doing IC work informally. Could you help me figure out which would be better as far as my taxes go?
AI accountant’s answer:
You can always continue to provide your contracting work through your sole proprietorship. And as the only owner of your contracting business, there is little tax difference if you choose to become an LLC. However, becoming an S-Corp, can allow you to avoid paying some self-employment tax. And depending on how much your contracting business is making, this could be a sizable tax savings.
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Answer
You can always continue to provide your contracting work through your sole proprietorship. And as the only owner of your contracting business, there is little tax difference if you choose to become an LLC. However, becoming an S-Corp, can allow you to avoid paying some self-employment tax. And depending on how much your contracting business is making, this could be a sizable tax savings.
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Melissa Pedigo, CPA
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