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Topic: business structure for freelancing
| Author | Message |
| snappiness | Posted – 4/7/2008 10:15:51 AM | show profile | email poster I'm considering changing my freelance "business" from a sole proprietorship to a C corporation in an attempt to mitigate my tax liabilities. I'm curious to know what other business structures freelancers have in place, and why? |
| dribbledrive1 | Posted – 4/7/2008 2:09:40 PM | show profile Based on my research, the only case where the change might make sense from a tax liability standpoint is if you are putting a huge amount of your income back into the business -- buying a $50K computer system or office building for example. Otherwise, the benefits are mostly around reducing your personal liability rather than mitigating taxes. Most of the writers I know don't bother with C corp. |
| snappiness | Posted – 4/7/2008 3:02:37 PM | show profile I have a friend with his own business that is a C Corp. He points out that his shareholders (basically, him) vote annually to give the CEO (him) a company car, to pay for his housecleaning, pay his utility bills and many other expenses. I was just thinking maybe I could do something similar. But C Corp is double-taxed, so I'm not crazy about that. Then again, I don't show a big profit, so....just wondering what other people do. |
