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Who does your taxes? Need a recommend. Thanks.
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1099 charges you no taxes. You’re technically supposed to save up and pay the taxes later. A lot of people prefer 1099 because it’s easier to cheat on your taxes. For example, you can write off your HBO and Netflix subscriptions even though you work in pharma mostly working on prescription laxatives.
You end up owing more in taxes with a W2 vs 1099 so do not charge less
You’re both right, kinda. If you take a 1099 gig as a sole proprietor, you get taxed more than W2. BUT - if you have an S-Corp and run the 1099 project through your S-Corp, you pay significantly less in taxes than W2. This is because, as an S-Corp, you must pay yourself a reasonable salary but take the rest as a distribution, which is not subject to FICA taxes. Add to that the writeoffs you can take as a business for internet, software, subscriptions, insurance, etc.
Talk to your accountant but if you are serious about freelancing and will be making around 100k+ per year, an s-corp can offer significant tax advantages.
Set yourself up as an s-corp, ideally.