tax code

[Mark Padgett]

Originally posted by Barry C. Morris
Brian Watson, incorporation brings costs to incorporate and the problem of double taxation (don't ask).

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.