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Perhaps I missed a thread on this one; and if so - please point me in the right direction. I'm departing from my present role, which has asked me to stay on as a consultant at a very reasonable rate, fully remote - hard to say no. I have an extremely good rapport with them and am inclined to accept the consulting position. They have offered to allow me to take W2 or 1099; I'm still waiting on figures for the rates comparatively so I'm not sure about that just yet. That said, can anyone provide me some insight as to what it looks like from a tax perspective? Benefits, cons? Should I setup an LLC for the position, or just go direct 1099? Basically, a quick primer would be awesome. For context: - Own our home - Dedicated office space (100% for work, 100% dedicated) - Relatively minimal expenses towards consulting aside from the dedicated office space, and internet connection - Consulting would be either 1099 or W2; W2 rate is ~$78/hr; 1099 rate TBD - waiting on this information. I'm not sure what I dont know; which is the point of this thread. Someone who has been down this road: please school me!
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Mar 9, 2017 21:37
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Thanks! I am 100% not planning to do anything without an accountant. Sadly, they're all booked right now and this change is going to take place before tax season ends. So I'm trying to get my bearings and find someone who can squeeze me in, even if just an initial consult.
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Mar 10, 2017 01:39
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Cheesemaster200 posted:While I am not an expert on this, I have always understood the bigger advantage to making an LLC is that you limit your personal liability for anything that may happen when you contract out to other companies. This is one facet; however I'm finding a lot of references to tax benefits of operating under an S-Corp. I really wish this transition wasnt happening during peak tax season so I could just nail down a CPA for a bit of time.
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Mar 10, 2017 17:03
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Thank you both. I am inclined to go 1099 and firm an LLC - I think I've finally nailed down a CPA with good reviews and some availability. Thanks for all the insight so far!
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Mar 14, 2017 13:36
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