Hi everyone just left my permanent role to go the contractor route. Currently employed through a staffing company so I am a W-2 but plan on going the independent route. They offer insurance and 401k. I understand I’ll need to start an LLC. Any advice or things you wish you’d have known when you first started? Would you advise I stay with the staffing? They take. 16% cut but the projects are lucrative

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Go the LLC route earlier if you can

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To add I live in NYC

To go independent you don't necessarily need an LLC. You do need an EIN so you don't flash your SSN. Most LLCs are just pass throughs from a tax perspective, the LLC side just gets more flexibility and slightly better liability protection. it's mostly just a good idea from a tax deduction standpoint. If you need insurance it's a good idea to stay w2. it's going to be way more expensive solo. They also cover your payroll tax portion that as an independent you'd be on the hook for, if forget the % but it's nearly 14% so not sure how they are making money off you? normally agencies add on 30-50% markup when they run me through payroll as a w2. 16?% cut is very low especially if they are finding you the work (which is lucrative). Maybe I need the name of your staffing co?!

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