03/07/2022
Are you worried about paying too much on your taxes this year? Many 1099 contractors face the burden of paying a full year of unclaimed taxes due to their employment status.
It can be worrisome to think about how much you can owe to the IRS, especially all at one time. For many, cash flow is necessary to survive the daily expenses of life.
There is however a way to ensure that the impact of your taxes are leveraged.
A Limited Liability Company, or LLC for short, offers businesses an inexpensive, flexible, and credible way to allow business owners to protect themselves from personal liability. You can either form a Single member LLC or multi-member LLC when you create your business.
Typically a Single member LLC is a disregarded entity and will be taxed at the ordinary sole proprietor tax rate. A multi-member LLC is typically taxed as a partnership, which faces a different yet favorable tax rate, depending how you structured your company. However, an LLC is also allowed to be taxed as an S-Corp. An S-Corp can allow the owner(s) of a company to save on taxes. It is a tax classification with specific rules that can be beneficial to your company if your business earnings are significant.
Don’t wait until it’s too late to switch your contracted payments into revenue for your own business!
Contact me today for more information.
Credit to for the creative flowchart!