Starting a business - please advise which type

I don't know what half that shite means, but one of the most important things you need to add is the pay. I'm guessing its fairly high, so you will likely save significant self employment taxes by setting up as a S-corp. But as the only employee, you need to speak to a CPA about that.

You need to strong consider benefits here. If they want to pay you as a contractor, it should be 40-50% more AT LEAST then a direct hire with decent to good benefits. They aren't paying their share of taxes, workman's comp, time off, and any benefits like health care.

Some people think a 20% increase in pay to do contract work is great, its NOT for anyone making over $100k that's actually terrible.

ETA: Also, need to consider CPA/ Book keeping charges for a LLC. Probably talking $2000 or so a year for a good CPA.

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I don't know what half that shite means

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At least you qualify your typically bad advice now. Progress, that's all we can ask for.

When working Contract W2 I increase my rate over direct hire to cover my additional cost of benefits not provided (health care, retirement contribution, etc.). The rate as a c2c (corp to corp) will be significantly higher to cover all that and taxes as well.

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Just because you don't like my advice, doesn't mean I'm wrong.

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But you are wrong and you don't know what you are talking about. It has nothing to do with whether I like it or not.

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Depends, is this a one off or does he plan to do more of this going forward. If it's a one off, it likely doesn't make sense to do an S Corp, he have to pay to incorporate, set up payroll, pay himself, file the Corp return, etc, etc. Probably file a Texas franchise tax return. Way too much shite to do to maybe not save any money. S Corps have some big advantages but they aren't a one size fits all.

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I can say my CPA talked me into doing my (single member) LLC this way initially and it was an absolute cluster frick and nightmare. Way too much to worry about just to get around a little extra taxes. The hassle just wasn’t worth it.

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he have to pay to incorporate, set up payroll, pay himself, file the Corp return, etc, etc. Probably file a Texas franchise tax return.

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easy to do. and easier once setup and streamlined. my CPA files the franchise tax for me with my taxes.

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sole partner

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sole

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- means only, solo, alone.

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partner

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- Means someone else you’re in business with.

Does not compute.

I’m not a money or business expert by any stretch, but I was obligated to say it.

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cheaper? LOL. my CPA charges peanuts compared to the thousands upon thousands I save in taxes being taxed as an S-corp.

Now, if he makes a lot and wants to pay out his arse in SE tax hey knock yourself out. Me? f that.

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I feel like I'm beating my head against a wall. I'm done with these threads. I'll let Baldona, who I think just inherited everything because he's a fricking retard with anything tax, and the real estate guy give all the advice.

Can you not read or do you not care, holy shite

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Set up an LLC. go with an S corp

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Schedule C is NOT the way to go

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Im done arguing about it, but that just depends as I've already said. Is he going to contract going forward or is this a one off? How much is the contract worth? Etc, etc.