Freelancers, do you actually benefit from having an S Corp? Assume someone is earning about $100k in 1099s and $150k in W9s. Everyone says “oh get an s corp for taxes” but does it ACTUALLY help lower your taxes? (Also, can you get ALL 1099s if you bill through your s corp and does THAT help?) Everyone who insists on it says things like “yeah I’m not sure how, but it helps” or “this is my first year doing it.”

like
Posting as :
works at
You are currently posting as works at

Yes, because:

You can pay yourself a lower "salary" than what you took in, and keep the rest as business income which is taxed at a lower rate.

You can write off meals, travel, equipment purchases (TV, iPhone, new headphones, etc) streaming subscriptions, wifi, etc., meaning you don't pay taxes on those expenses up to a certain amount.

And then, once you get enough income coming in: you can match your own 401k (its called a 403b or SEP in this case but its the same thing basically). So you give yourself a salary high enough to put the max into a 401k, then the s corp can match it with money in the business account. Meaning you can put away approximately 50k tax free each year.

Get a decent accountant to help you. Absolutely worth it. (Dm me for a good reco if you want).

likesmart

Thank you for taking the time to say all this though!

like

This is the best explanation I’ve heard.

Post Photo
like

Thanks 🙏

Also writing off business expenses

Our CPA lets us do it as long as we have some 1099s

like

Related Posts

Question for Sales leaders who’ve said “I did an analysis and concluded we just need more at bats”.

Does it feel like you’re saying something useful? Or are you also writing a book titled “In order to get rich you just need more money”?

likefunny

Hi Fishes !
What are your thoughts about investing in reliance power for long term !
I'm a newbie in stocks .
Any suggestion will be appreciated !

like

Had a quick question, I see 1.5k in zerodha coin, is that a profit? If yes, how it's so great since I have only invested 40k in MF, 2 weeks back?

Post Photo

Ugh I just signed to fix my house’s mortgage interest rate at 2,73% for 2years. Instantly regret it.

like

Can any one tell me, how to invest in quant mutual fund through it's website?

like

I’m prepping someone’s tax return who I see everyday on tv. It’s kind of cool being privy to a celebrity’s confidential financial information. 😁 I’ve also prepped a famous athlete and actor last week.

likeuplifting

25M in NYC - working in finance

Female 🐠s come say hi!

like

Talk me out of (or into!) buying a 2000 M Roadster. $14.5k, 111k miles. Mechanically sound with records, cosmetically nothing I can’t repair/replace.

like

Fishes! what are the best grounds to dispute my property tax valuation? What support should I have?

like

What are the mortgage rates you guys are getting? Best I’ve heard is 2.5% (30year fixed) curious if anyone has heard better?

like

This might be philosophical but wanted to understand if we should get satisfied and be happy with what we have or keep striving for more?

Reason I am asking this is - I earn close to 1.5 lakhs every month and if someone had told me this during my college days I would have taken it eyes closed thinking this is more than enough. But today, I am not able to be satisfied and I don't want this to become an affliction so thought to share with others here and get to know the general sentiments.

like

Looking to acquire Practices in the greater Providence, RI area. Message me for a discussion. Deals are 95% cap gains and not ordinary income.

like

Is it worth it to buy a multi-family home to rent out?

like

What is the best way to look at historical PE investments? I am hoping to discover new PE firms for networking / sales purposes. Potentially a website specifically that tracks announced PE deals. Thank you!

like

Do you think LINK has any future? looking at current state, all other crypto ia somewhat appreciating, where as LINK is slowly declining

likefunny

Making a lot of money relative to the average but feeling poor? Median after-tax income was ~$55,000 in 1981 and was ~$73,000 in 2020. Using a Bank of Canada inflation calculator $55,000 in 1981 is equivalent to ~$165,000 today, which would put someone in the top 10% of earners today. But in 1981 the median family had that extra money. Who can I blame?

Post Photo
like

Everyone keeps saying that the real estate market is going to bounce back soon. At this point I'm more likely to believe that unicorns will take over the world

like

Best app to track my crypto growth ( link my different crypto accounts)
I have accounts in ....CONTD

like

Any metaverse coins I should be looking at? What’s the next big thing? Have a few grand to gamble away.

like

More Posts

like

Has anyone in this group used their coaching services for athletes, mental training and goal setting vs physical training?

like

Can some one help me refering at job id 105036
Azure Data Engineer in Oracle please?

TIA!

Exl offices not opening anytime soon right ?

like

Why are people always surprised when we're closed for holidays? There are emergencies but being rude because we won't book a 9am cleaning on Thanksgiving is incredible

funny

Self-Promotion Alert: In association with my upcoming personal finance blog, I have a draft of a blog post about paying off my car that I would love to get some feedback on

DM me if you’re interested

Any dermatology research opportunities?

like

I have worked in a PM team for 4yrs

> 3yrs were as a Business Analyst & 1 yr as an Associate PM in other company. If in a JD its written 2yrs of PM exp required, then will my application be considered even though I have 4yrs of Product Management team Experience?

If Not then WHY is this trend in market?

like

Hello All, I have an interview for Salesforce Data & Integration Senior Consultant at Toronto. Can anyone help me with what kind of questions to expect?
10 YoE in the space.

like

How many agencies give cost of living/yearly raises vs just a “yearly bonus” ?

Can ya guess which one Barkley is?

like

I am looking for opportunities as a Scrum Master and Business Analyst. I can play either roles well.
I prefer the product industry.

like

Which is the advanced mobile apart from iPhone?

like

How is hotstar work environment for devops profile?

like

Hi Fishes, I am a lateral joinee in tcs. Can someone tell me what is the buyout amount for notice period. Is it the entire salary or basic pay?

like

Hello everyone,

I wanted to know how long does Course5i take to release an offer, I cleared all rounds last friday and was going to get an offer from HR early this week (by Monday evening or Tuesday) but didn’t get any offer till now.

I loved the role and I am still excited to join the organisation so mailed a follow up to the HR yesterday but did not get any response till now. I do not want to follow up for the next 1-2 days since I feel it would be too pushy from my end.

like

In 2015 different governments in the US collected $5,175,829,952,000 to service 321,230,000 people. That’s over $16,000 per person. Anyone else find this shocking?

like

Hello fishes,
I am currently working as project manager / scrum master in one of leading Indian MNC. Can someone please refer me in your company. Would share the profile in case you can. Please let me know the company name as well.

like

If you're going to be working on a longer flight, would it be possible to expense the in-flight wifi?

like

For those in financial services strategy, I’d love to gain some more insight in what’s going on in the industry.
- What kind of projects are you working on?
- What problems are you solving for your clients?
- What challenges do you see coming up in the next 12 months on the client side?

likefunny

Why is Deloitte giving Iphones to people and what is this well being program? Can anyone explain.
Also, does it apply to Deloitte India(not USI) employees? Thinking of joining Deloitte India in feb in consulting service line.

Additional Posts in Advertising

I want to recommend to HR an Email Etiquette Workshop for teaching Assistants to Executives how to write to clients, address colleagues above and below their levels, and avoid passiveness. Any reco's?

like

How would you explain to a n hiring manager the fact that your last two jobs didn’t last very long because you hated the workplace and you quit?

like

If consumers prefer diversity in ads, wouldn't it make sense to have a more diverse industry? Why does agencies lack diversity?

like

NEXT MOVEMENT: PUT AN END TO UNPAID EXTRA HOURS!

likeupliftingsmart

Where is the industry going?

In 10 years, how will the traditional shops be doing vs. the consultancy’s vs. the in-house agencies vs. the PR firms vs. prod co’s vs. all the small specialized shops.

likesmart

🐠 Would you rather work on award winning next level creative with zero work life balance or churn out mediocre work and have a healthy work life balance?

like

best excuse to use when you have to escape the office for 2 hours to go on an interview?

like

When an agency is about to hire you as a creative lead but without seeing your book to find out what you had done in your career, is that a red flag to you as a creative?

like

If your agency were a controversial celebrity, who would they be?

like

Which agencies would anyone here say do strong work with social media - clearly understand the medium in their content work, innovate with platform capabilities... would any of you say your own?

like

Realizing this may not have been the best career choice for someone with bad anxiety...

likefunny

I recently started a new job. My boss communicates in strange ways and it clearly affects the assistant on our team. I’m not technically her boss, but is it my place to be like, hey, let’s talk (cont)

like

How many agencies give cost of living/yearly raises vs just a “yearly bonus” ?

Can ya guess which one Barkley is?

like

What’s the best group to work on at FCB Health?

like

Who is the main contact for Ogilvy recruiting?

likehelpfulfunny

Do people read Glassdoor reviews? I should have before starting here 🤦🏽‍♂️

like

Anyone else just waiting for impending layoffs or are we at the end of the recent wave?

like

Where my gays at?

like

Anyone working at Amazon as a Designer or an Art Director? How is it?

like

Clues that you didn’t get the job?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal