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Activity Forums Q & A Startups Do I go LLC, S-Corp, or 1099 for a new small business?

  • Do I go LLC, S-Corp, or 1099 for a new small business?

    updated 3 weeks, 2 days ago 0 Member · 1 Post
  • Charles

    Member
    October 25, 2019 at 11:02 pm

    I recently accepted a job that offers $110/hour 1099/C2C or $100/hour W2. I decided to take $110/hour C2C and have some questions about setting up my corporation and taxes. (If you think W2 is better please let me know) From my research I believe it is better to create an S-Corp over an LLC. I was going to use https://www.zenbusiness.com/pricing to do this for me. I was also going to meet with an accountant. Since I live in California I will have to pay $800 in taxes this year, then $800 taxes for next year to create the S-Corp. With an estimated invoice of $215k/year I planned the following breakdown: ~7.5% in Employer taxes ($16000) ~Pay myself $125K salary -Pay myself $40k for 401k (20k Employee from salary, 20K Employer) ~Pay myself $54,000 as a K-1 distribution (Lower Tax rate) The role is guaranteed until June 2020, but I believe it will be extended for longer. Please provide any helpful advice if you have done this before, this is my first time. Does anyone have any online tax or CPA recommendations? – by hq overview ScreaminSeaman – –

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