What is the name of your state? California
Here's my status:
I am currently making $75/hr. as a W2 employee through an agency. They get $14.25/hr so the total rate I make is $89.25. I have the opportunity to incorporate myself and come in as a Independent Contractor. If I do this, I will get $84.25/hr. instead of $75/hr.
So my salary is currently about $150K/yr, I have about 20K in deductions (mortgage, one child, etc.) and about 10K goes to my 401k. I am married, but my wife doesn't work. I am getting killed on taxes.
My current agency doesn't allow the $610/month medical benefits to be taken out pre-tax, and the 401k sucks, so there is really no benefit to staying with them.
I realize if I incorporate I will have to pay additional taxes. I also know there are differences between C Corps, S Corps, and LLCs, but I am curious which one (if any) would be best for my situation. My main question is, would it be worth it for me to incorporate myself? I don't plan to expand, bring in additional employees, or hold money in the corporation. I just want to know if I will end up making more money as a corporation at $84.25/hr than I would if I stayed W2 through the agency at $75/hr.
If/When I leave my agency I will need to go on COBRA to maintain my medical benefits, are these premiums 100% deductible if I am a C corp? How about a S Corp or LLC? If I stay W2 I have to get at least %7.5 in medical payments before I can even start to write this off..
What other items can I write off if I become incorporated (i.e. computers, car, mileage, etc)? Do these write-off or fringe benefits change depending on if I am C, S, or LLC? I read I can't write-off medical payments if I am an S Corp.. Also, are there any limitations/benefits since the corporation would be out of my home (office)?
If there is someone out there that can help me with these questions, maybe they can also provide me help with filing the actual forms I will need for the IRS as well as when I need to do my taxes. Preferably someone in California and in good standing with the BBB that I could rely on for years to come.
Here's my status:
I am currently making $75/hr. as a W2 employee through an agency. They get $14.25/hr so the total rate I make is $89.25. I have the opportunity to incorporate myself and come in as a Independent Contractor. If I do this, I will get $84.25/hr. instead of $75/hr.
So my salary is currently about $150K/yr, I have about 20K in deductions (mortgage, one child, etc.) and about 10K goes to my 401k. I am married, but my wife doesn't work. I am getting killed on taxes.
My current agency doesn't allow the $610/month medical benefits to be taken out pre-tax, and the 401k sucks, so there is really no benefit to staying with them.
I realize if I incorporate I will have to pay additional taxes. I also know there are differences between C Corps, S Corps, and LLCs, but I am curious which one (if any) would be best for my situation. My main question is, would it be worth it for me to incorporate myself? I don't plan to expand, bring in additional employees, or hold money in the corporation. I just want to know if I will end up making more money as a corporation at $84.25/hr than I would if I stayed W2 through the agency at $75/hr.
If/When I leave my agency I will need to go on COBRA to maintain my medical benefits, are these premiums 100% deductible if I am a C corp? How about a S Corp or LLC? If I stay W2 I have to get at least %7.5 in medical payments before I can even start to write this off..
What other items can I write off if I become incorporated (i.e. computers, car, mileage, etc)? Do these write-off or fringe benefits change depending on if I am C, S, or LLC? I read I can't write-off medical payments if I am an S Corp.. Also, are there any limitations/benefits since the corporation would be out of my home (office)?
If there is someone out there that can help me with these questions, maybe they can also provide me help with filing the actual forms I will need for the IRS as well as when I need to do my taxes. Preferably someone in California and in good standing with the BBB that I could rely on for years to come.