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Starting a business - please advise which type
Posted on 7/12/22 at 11:59 am
Posted on 7/12/22 at 11:59 am
I have a job opportunity for a PM position on a software implementation (SAP). Previously I have been contract W2 or direct hire. This company is asking to do c2c so I am looking at setting up a business. I think LLC is the way to go (I would be the sole partner and employee) but would welcome any advice others have. This is in Texas.
Posted on 7/12/22 at 12:04 pm to TXTIGERTAIL
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.
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.
This post was edited on 7/12/22 at 12:08 pm
Posted on 7/12/22 at 12:04 pm to TXTIGERTAIL
That's what I would do for now. If you become a sole proprietor exclusively going forward it could be worth setting up an S Corp, but that comes with more accounting administration and you are subject to Texas Franchise Tax.
Based on your limited info, it seems like LLC is your best bet for now, but it could be worth meeting with a CPA.
Based on your limited info, it seems like LLC is your best bet for now, but it could be worth meeting with a CPA.
Posted on 7/12/22 at 1:31 pm to TXTIGERTAIL
LLC taxed as an s corp. Talk to a CPA.
Posted on 7/12/22 at 10:45 pm to TXTIGERTAIL
quote:
sole partner
quote:- means only, solo, alone.
sole
quote:- Means someone else you’re in business with.
partner
Does not compute.
I’m not a money or business expert by any stretch, but I was obligated to say it.
Posted on 7/13/22 at 2:51 pm to TXTIGERTAIL
quote:Set up an LLC. go with an S corp and pay yourself a reasonable salary and play in the grey with reported self employment income on your K-1
I have a job opportunity for a PM position on a software implementation (SAP). Previously I have been contract W2 or direct hire. This company is asking to do c2c so I am looking at setting up a business. I think LLC is the way to go (I would be the sole partner and employee) but would welcome any advice others have. This is in Texas.
Posted on 7/13/22 at 5:50 pm to TXTIGERTAIL
quote:
I have a job opportunity for a PM position on a software implementation (SAP)
I'm curious. New implementation? Small or midsized company? I'm assuming S4 Hana?
I'm a solution architect / PM and was thinking about looking at some contract work on the side.
Posted on 7/15/22 at 8:08 am to TXTIGERTAIL
Depending on how much income we are talking about, a C-Corp could be better than an S-Corp.
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