Is it possible in the US to pay no tax? Is it possible? Yes Is it easy? No Income tax– which is what most people think of when you say taxes is the easy one. Just don’t earn any income and you will not owe any income tax. I overstate that somewhat, because you could Read more about How to not pay tax in the US[…]
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?[…]
We thought you would find the following information helpful if you own a small business and are impacted by Covid-19. SECTION 139 DISASTER RELIEF PAYMENTS General Rule — Gross income shall not include any amount received by an individual as a qualified disaster relief payment. Qualified Disaster Relief Payment Defined — For purposes of this section, the Read more about Covid-19 Resources[…]
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[…]
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[…]
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?[…]