Should I join a start up as a 1099 employee or W2 employee?

Answer by Wray Rives: First off it is not really a choice you make of being an independent contractor or employee.  If you receive a 1099, you are not an employee and just referring to yourself as a 1099 employee, probably means you don't qualify and you really are an employee who should be receiving Read more about Should I join a start up as a 1099 employee or W2 employee?[…]

Benefits of S Corp vs sole owner for freelancing

Answer by Wray Rives: When freelancing, the primary benefit to S Corp vs sole proprietor is that you may be able to save significant self-employment taxes.  Sole proprietors pay 15.3% SE tax in addition to income tax on the net profit from their business.  S Corps pay their shareholder/owners a salary which is effectively subject Read more about Benefits of S Corp vs sole owner for freelancing[…]

2015 Tax Rates

Individuals Tax Rate–Single Taxpayers–2015 Taxable Income Over But not over Tax Tax % On Amount Over $                     –        9,225.00                     – 10%                                  –        9,225.00      37,450.00            922.50 15%                     9,225.00      37,450.00      90,750.00        5,156.25 25%                  37,450.00      90,750.00    189,300.00      18,481.00 28%                  90,750.00    189,300.00 Read more about 2015 Tax Rates[…]

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How do you elect your existing single member LLC in Texas, USA to be taxed as an S corporation?

Answer by Wray Rives: To make the election, you will need to complete a Form 2553 and mail it to the IRS.  Texas does not require anything and making the election will not impact your Texas franchise tax reporting. There are a few items you need to note. Because you are in Texas, a community Read more about How do you elect your existing single member LLC in Texas, USA to be taxed as an S corporation?[…]