About
I am a solo CPA + IT professional, with long experiences in the public accounting works and IT services. I have helped a wide variety of clients from self-employed to large corporation.
I enjoy my free agent life. It is very exciting because it challenges me to be agile and adaptive. The feeling of being on the edge expands my soul and keeps me being real.
The posts here are my attempts to view many issues from simple perspective, hoping to get back to the basics, while contributing to the to the emerging trend of “free agent nation” by helping my peers.
I live in Texas and will start working on a commission basis. If I am to receive large commission amounts, is it better tax wise to stay as an individual contractor or to form a one person LLC.
LLC is a pass-through entity. The business net income will flow to your personal tax return. You will be paying both income tax and self-employment tax (social security taxes). Some people choose to elect their LLC to be taxed as s-corporation, and pay salary to the members. The idea is that you pay social security taxes on your salary only, and the rest of the net income will be subject only to the income tax.