"Stormy"
<stormyh20spants[at]yahoo.com> wrote:

- quote -

Incorporating will NOT save you on income taxes. It may in fact be more
cost more money to operate.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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Stormy <stormyh20spants[at]yahoo.com> wrote:

- quote -

I doubt being a sorporation will save you any taxes.

However even as a sole proprietor you might qualify for a home
office deduction. Even if you rent. See IRS Pub 587.

--

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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stormyh20spants[at]yahoo.com posted:

- quote -

Assuming your contract work is as a non-employee, the first
bite is the l5.3% you will owe for Social Security and
Medicare. If there is any way you could negotiate your
employment, so that you are paid through that company's
payroll -- and therefore only have to pay 7.65% while the
company pays an equal amount -- that would be the best first
step. As an incentive to obtain that status, you might offer
to renounce any other employee benefits (such as health
care, etc.).

If that agreement can't be worked out, then the principal
options you have to save on taxes, are to establish one of
several IRA plans, which would reduce your taxable income --
but also your actual cash received (and that might not be
acceptable to you).

But this is a good time to explore options, and you may
benefit from a consultation with a financial advisor of some
sort. Only a complete review of your total income and
family status can properly enable a professional analysis
and recommendations.

Bill

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- quote -

consider keeping your business simple. Likely, your best
bet would be to operate as a sole proprietor. Liability
issues can be addressed with a good insurance policy. There
may be little, or next to no problems in that area,
dependingon what you do.

Incorporating can cost you more in time and money than any
value you might imagine. Before you ever make such a
decision, be sure to seek the services of a professional who
has an interest in your welfare and not the fee they might
make to have you incorporate.

Study this material from The Business Owner's Toolkit" for
insight into the various business entity type to help you in
your decision making. Immediately, play by KISS:

http://www.toolkit.cch.com/text/P12_4000.asp

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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I am starting contract work as a second job. I will be
getting paid hourly but will be doing most work from home.
My question is: Can I set myself up as a coporation and save
money on taxes or am I just pretty much screwed. I am single
and rent so I don't have many deductions to begin with.

Any help is apreciated and I thank you in advance.

--
Ken
remove pants to reply

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