Tax Benefits Operating as Business vs Employee?

[macx]

What is the name of your state? MO

I operate as an independent contractor providing construction quality control oversight services to large construction projects, and am normally hired as an individual thru a specialty agency usually called a "headhunter" rather than directly by the customer.

I know people that work as I do that claim to have organized themselves as a business primarily for the tax breaks - ability to deduct additional expenses that an individual can't claim.

I have essentially no personal liability to worry about, and would hire my wife
as my bookkeeper and base my business in my home.

Is there a way to declare myself and organize as a business that would be
practical and worthwhile?

Thanks!

 

[LdiJ]

What is the name of your state? MO

I operate as an independent contractor providing construction quality control oversight services to large construction projects, and am normally hired as an individual thru a specialty agency usually called a "headhunter" rather than directly by the customer.

I know people that work as I do that claim to have organized themselves as a business primarily for the tax breaks - ability to deduct additional expenses that an individual can't claim.

I have essentially no personal liability to worry about, and would hire my wife
as my bookkeeper and base my business in my home.

Is there a way to declare myself and organize as a business that would be
practical and worthwhile?

Thanks!

There are no expenses that you can't deduct as a schedule C sole proprietor, that you can deduct as a separate business entity. You also can get an EIN number and hire your wife as a sole proprietor as well.

However, there can be some tax advantages to organizing as an S-corp or an LLC electing to be taxed as an S-corp.

Get a sit down consult with a local tax pro, find an office that is open all year long.

 

[macx]

Thanks!

I'd forgotten aobut the "sole proprietor" thing, and haven't
looked into an LLC at all.

My only experience was forming a Sub-S but that was back
in the late 70's and I'm sure MUCH has changed since then!

I had planned on seeing a tax pro as the next step, if I got
any responses here that made it seem it may be worthwhile.

Thanks again.