RE: Anyone ever heard of this book or program

Subject: RE: Anyone ever heard of this book or program
From: "Wade Courtney" <WCourtney -at- Elance -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Wed, 13 Nov 2002 14:55:57 -0800


If I incorporate, how does that affect my ability to accept a job as an employee of a company?

Wade



Janet's step 1 is an excellent idea, BTW. An S corp. works well for most
people, but other options such as an LLC or PC may be possible. A corporate
entity gives you at least three advantages over being a self-employed
individual:

-- A more professional image and greater credibility/acceptance. Some
companies that won't directly contract with an individual will contract with
your company for your services.

-- Payroll tax savings. If you net $80k of self-employment income, you pay
payroll taxes (SS/Medicare) of 14.3% on all of it -- over $11k. If your
corporation nets $80k, it can pay you, say, $50k salary; the remaining $30k
is profit to the stockholders -- that's you. But you don't pay payroll taxes
on the profit distribution, only on the salary. So you save 14.3% of $30k --
over $4k.

-- Free pens and stuff. You'd be amazed how many companies will send you
free samples of pens, calendars, day planners, etc., personalized with your
company name, in the hope that you'll order a few thousand as marketing
tools. :-)


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