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If my wife has a W9 job as a design consultant under the…

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If my wife has a...
If my wife has a W9 job as a design consultant under the umbrella of another design company should she open a sole proprietorship, LLC , or incorporate to ensure maximum tax advantages and minimize liabilities?
Submitted: 5 months ago.Category: Tax
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Answered in 16 minutes by:
11/22/2017
Tax Professional: Lev, Tax Advisor replied 5 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,697
Experience: Taxes, Immigration, Labor Relations
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That depends on her net income from that business activity...

If she is paid as an employee - and her income is reported on W2 - having a separate business entity might not make any difference.

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Tax Professional: Lev, Tax Advisor replied 5 months ago

But if she is an independent contractor - she might benefit from having S-corportaion - but again - because of additional overhead - she will likely save on employment taxes if her net business income will overpass $40-50k.

For income taxes - there will not be any difference.

Please let me know if you need any details.

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