mardi 3 octobre 2017

Corp-to-Corp v.s. 1099

I'm going to be doing some work for someone that will average around 150K a year in total services per year. The issue is that I need to make a decision to do this via 1099 or Corp-to-corp. It seems the customer wishes to do it corp-to-corp as I suggested 1099 early. I didn't know the major differences between each and I'm seeing now that corp-to-corp is more of a headache and requires more taxes. Is this so? I have an LLC under my name and I can invoice the customer with that LLC, however I was reading that I would end up paying myself a salary as well as employer/employee taxes? Also I can't deduct my personal home office with corp-to-corp, not sure??

I have w-2 employment income of around 135K a year so we will be talking around 280 - 290K a year. I'm married and own two homes (one rental) and have two kids. So with this considered would it be better off going corp-to-corp v.s. 1099. I think the customer is scared that they could get hit up with re-classification and end up paying all the extra taxes since I would be considered an employee v.s. a 1099.... Which is better overall? If corp-to-corp can obtain lower taxes but a high amount of paperwork I can do that, since I believe the paperwork is needed for experience....

Please advise

Thanks


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