You can start a LLC or a corporation and be an employee of your own corporation.
There may be some cost involved in maintaining the Corporation and complying with the filing requirements.
As a single member LLC you can file as disregarded entity on Sch C or file as a S Corp. If you file as a disregarded entity than your entire net income will be subject to self employment tax.
As a Corp also you can file as a S Corp.
As an S Corp - you can pay yourself partly as an employee and partly as a distribution of profit (as stockholder). So you should take a reasonable payroll and be an employee of your S Corp.
Normally the net income (after all expenses) from the S Corp is reported on your personal tax return and is taxed on your tax return. S Corp does not pay any tax. In fact the profit from the S Corp is not subject to FICA and Medicare tax. So, most people do not take payroll from the S Corp but take everything as a profit. However this technique is not very successful with the IRS. IRS knows that the S corporation has been used by small business owners to avoid payroll taxes and so not taking a payroll from S Corp raises red flags.
Hence, it is advisable to take a reasonable payroll and take the balance profit, if any, as a profit distribution.
Let me know if you have any question.
Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.
Certified Public Accountant (CPA)
CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..