Thank you for using justanswer. I can assist you with your salary questions today.
(1) Which option is more beneficial to me i.e., Gross $120K per year with 10 days paid holidays & Medical Insurance or $90 per hour X 8 hrs per day X 5 Days a week without any paid holidays or insurance because i will work as contractor through my own LLC ? - $90/hr will give approximately $187,200K annually (that's assuming a 2,080hr work year). This is $15,600 monthly. You will take home close to $9,300 monthly (Fed Tax $2,857, Self Employment taxes of $2,386 & MN tax of $963) This does not take into account any health insurance which would also be used as a deduction to reduce Self Employment tax. So you earn close to 7,150 now so you could be looking at a $2,244 monthly increase (w/o health insurance). Seems like the S-corp would be more beneficial as you can escape some self employment taxes with this choice of entity.
2) If i join as a contractor on hourly rate through my own LLC or S-Corp , how much approximately will be my tax liability to deduct from my monthly income and what will i get in my hand actually because as an full time employee i get pay check of $7150 per month in my hand after deducting all federal , MN State taxes , Social Security Tax and Medicare , etc. from my gross pay ? - I think I answered this above. Let me know if something is not clear.
(3) As an contractor , i will have to take my & my family's medical insurance on my own . Any idea about how much approximate will it be per month for me , my spouse and one kid for a good medical insurance ? - You could be looking at insurance between $500 to $2,000 monthly. You would have to get a quote to see what it will cost based on your needs.
(4) Any idea about approximate how much time will it take to form LLC or S-Corp and start to join as contractor with the current client if i choose to join the client directly leaving my full time position with my employer company ? - You can form an LLC or S-corp online in most states. Delaware can be done online. You will be up and running in a few days.
I hope this provides some answers to assist you in making a decision. I think the independent contractor would be more beneficial from a financial perspective but there are risks from being an independent contractor (i.e. you aren't protected by state employment laws).
Please let me know if you have any further questions.