Re: 1099 vs Incorporation Pros &* Cons

Subject: Re: 1099 vs Incorporation Pros &* Cons
From: Michele Davis <michele -at- krautgrrl -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Mon, 08 Jan 2001 16:06:16 -0600

I'm going through this dilemma myself. However, for different reasons. People
still use my services even though I am a sole-proprietorship, however being
incorporated offers certain advantages.

As an independent you:

Pay Taxes
Pay Expenses

Whereas when you are a corporation you:

Pay Expenses
Pay Taxes

As an indy you pay taxes on the whole amount you earn, even the amount deducted
for social security, then you pay social security. So for me, I pay 30% to the
IRS on my social security then I pay my 15.2% of social security. As a
corporation I would not do that.

The only down side I can see is that I would have to payroll myself, thereby
giving my accountant some money to show me how to do it.

I have a lawyer, but probably wouldn't ask him to help me. Too expensive, and in
Minnesota incorporation is pretty easy. Download the form, fill it out, pick a
name, pay your fee, and then they send you your Tax ID number.

My advice would be to talk to an accountant, not a lawyer.


Develop HTML-based Help with Macromedia Dreamweaver! (STC Discount.)
**NEW DATE/LOCATION!** January 16-17, 2001, New York, NY. or 800-646-9989.

Sponsored by DigiPub Solutions Corp, producers of PDF 2001
Conference East, June 4-5, Baltimore/Washington D.C. area. or toll-free 877/278-2131.

You are currently subscribed to techwr-l as: archive -at- raycomm -dot- com
To unsubscribe send a blank email to leave-techwr-l-obscured -at- lists -dot- raycomm -dot- com
Send administrative questions to ejray -at- raycomm -dot- com -dot- Visit for more resources and info.

Previous by Author: Re: OT -- "its" vs "it's"
Next by Author: Re: Industry Standard?
Previous by Thread: RE: 1099 vs Incorporation Pros &* Cons
Next by Thread: Re: 1099 vs Incorporation Pros &* Cons

What this post helpful? Share it with friends and colleagues:

Sponsored Ads