Working as a Contractor - How to Structure for Tax Efficiency?

Does anyone have experience working as a contractor? I have heard it may be better to enter employment through an entity (LLC? S Corp?) for tax purposes, rather than be self-employed. Also understand there are nuances for this entity to not be disregarded for tax purposes.

I would appreciate any advice that anyone can offer.

2 Comments
 

An LLC on it's own does nothing federally. 

An entity taxed as an S Corp (either a corporation or LLC) is usually efficient because S Corp earnings aren't subject to self employment tax you still have to pay yourself though. 

This is a really fact specific conversation and I'd recommend talking to a tax profoundly on you state. 

 

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