Quote:
Originally posted by Barry C. Morris
Brian Watson, incorporation brings costs to incorporate and the problem of double taxation (don't ask).
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Since my wife works at home as an independent medical transcriptionist, our tax advisor recommended we incorporate two years ago. We are now an S-Corp and are engaged in the business of "Providing eclectic services to sports and business" (our tag line).
I get all my 1099s made out to our federal tax id number and we use a payroll service to pay us a salary once a month. Yes, we are paying employer taxes, but we are saving a lot of tax dollars by taking dividends instead of salary.
If you have a substantial chunk of your total household income being paid on 1099s, I would strongly suggest you check with your tax advisor to see if there's any advantage to you by incorporating.
In any event, I cannot stress strongly enough that you join NASO. The liability insurance coverage alone is worth the price. Go to naso.org for more info.