If you had the choice to be paid w2, 1099 or as an s corp–what would the variables be for s corp vs 1099?

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  • #90051 Reply
    Crystal

      All are contract to hire and no benefits.

      I think I understand the w2 and % more to ask for as a 1099 but not sure how that # moves for s corp.

      Hope that makes sense. Thanks for your insight!

      #90052 Reply
      Caleb

        Are you actually going to be able to operate as an independent contractor?

        Getting to choose between 1099 amd W2 with no difference in job description likely wouldn’t hold up to IRS scrutiny for the employer.

        All that said, Hourly rate as 1099 should usually be at least 15-20% higher at a minimum to account for payroll taxes and lack of benefits.

        Don’t miss: I don’t want to get into trouble with the IRS

        #90053 Reply
        Carl

          There is more to it than this. As a non-W2 contractor, you could be paid the money directly, you could form an s or c Corp, you could form an LLC, you could form an LLC and elect to be taxed as an s-corp or a c-corp…lots of variables.

          See an accountant in your hometown that you trust. They can help you determine what is best for your situation. Which way you go is going to depend on a lot of factors, including how long you’re going to be doing this and how much money you’re going to make.

          Good luck

          #90054 Reply
          Tom

            You probably should ask an accountant. There are likely several things to consider based on the nature of the business, the expenses you will incur, and maybe even liability.

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          Reply To: If you had the choice to be paid w2, 1099 or as an s corp–what would the variables be for s corp vs 1099?
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