[TriLUG] Re: [GoLugTech] legal question

[Marc M]

>From what I understand you <CAN> get some massive advantages,
tax-wise.  For example you can write off a lot of stuff that you
cannot write off as a regular W2 employee.  Computers, training,
travel, lodging, etc.  You have to pay higher taxes to social
insecurity, then spend money like a drunken fool if you want and it
lowers your tax burden.  That's what I have heard.

I know that at lower income levels this sort of thing can get you into
trouble, but with a decent hourly rate it is not so bad, at least
that's my impression.

And yes I also would expect to have to hire an accountant, there is no
way I understand accounting stuff...:)


Marc







On Wed, 23 Mar 2005 12:58:46 -0500, Mack.Joseph at epamail.epa.gov
<Mack.Joseph at epamail.epa.gov> wrote:
> Joseph Mack PhD, High Performance Computing & Scientific Visualisation
> LMIT, Supporting the EPA Research Triangle Park, NC 919-541-0007
> Federal Contact - John B. Smith 919-541-1087 - smith.john at epa.gov
> 
> trilug-bounces at trilug.org wrote on 03/23/2005 12:07:11 PM:
> 
> 
> >
> > 8.  Incorporating might be a good option.
> 
> (IANAL)
> 
> I LLC'ed myself a while ago and then un LLC'ed myself when
> I looked at the reporting involved.
> 
> For a single employee (sole proprietor) you only have to fill
> out a an extra form your 1040. It's simple.
> 
> If you're an LLC you have to fill out the same tax form that
> Ford and GM etc have to fill in. I didn't have a clue what
> any of it meant and would have to hire accoutant to do it.
> 
> You don't get any advantages (although can't remember what they
> are) until you start employing others (eg subcontracting people).
> 
> You do get limited liability. This is fine if you're in an occupation
> where large damages can be involved (an employee falls off a roof and
> incurs large medical bills). For programming/sysadmin I'm not likely
> to have anything like this happen. If anyone needs it I have a clause
> saying "max damages for unsatisfactory work will be return of money
> paid on the contract".
> 
> You also get to register a business name, which you can't do by
> yourself.
> 
> Joe
> 
> 
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