Kronk
Full time employment: Posting here.
My consulting firm is allowing me to switch from being a W2 consultant to a 1099. My rate as an 1099 contractor will be $5 per hour higher than as a W2 consultant. So, it looks worth it to me.
I'm talking with my accountant today, so I'm interested if there are any thoughts here about things I missed, or things I might want to ask my accountant.
The plan is to:
On the plus side: higher rate, higher 401k savings, can roll over my current 401k to an IRA, lower taxes, more deductible expenses (including HSA premiums).
On the down side: accountant fees, paperwork
Any thoughts, or other considerations to keep in mind?
I'm talking with my accountant today, so I'm interested if there are any thoughts here about things I missed, or things I might want to ask my accountant.
The plan is to:
Establish an S-Corp. I created a different corp a couple years back with a lawyer. Anyone establish one through a web site (such as Incorporating, Limited Liability Company, How to Form an LLC, Incorporate Online)?
Create a Solo 401k through Fidelity. My corp will contribute 25% of my W2 wages.
Establish a home office. Minimal portion of the house, but will allow me to deduct commuting mileage.
Run my own payroll taxes.
Set my salary to be a "reasonable" salary and take the excess in distributions.
Create a Solo 401k through Fidelity. My corp will contribute 25% of my W2 wages.
Establish a home office. Minimal portion of the house, but will allow me to deduct commuting mileage.
Run my own payroll taxes.
Set my salary to be a "reasonable" salary and take the excess in distributions.
On the plus side: higher rate, higher 401k savings, can roll over my current 401k to an IRA, lower taxes, more deductible expenses (including HSA premiums).
On the down side: accountant fees, paperwork
Any thoughts, or other considerations to keep in mind?