I live in Texas and don't pay state income tax.

I'm thinking of applying for a fully remote contract role that pays $50-$70/hr. Based on 2000 hours/year this would be $100k - $140k.

I've heard that independent contractors pay about 30% flat on their income. If I create an LLC, would that income just get taxed at my personal income rate?

Also, since it is an LLC could I then expense my home office and utilities as business expenses? Thanks in advance and would love to hear any thoughts/tips.

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You do not need an LLC to deduct your expenses, as a contractor you’d file on schedule C where you can take the deductions. Your LLC benefit is the legal protection, and assuming you are the sole owner of said LLC youd still file on schedule C as a SMLLC. You are subject to both side of SS/Medicare taxes + income taxes, but are able to deduct employer side of SS/Medicare taxes (50% roughly) . You’d report your deductions on schedule C, use form 8829 to deduct your home office expenses.

Edit: also note if you create an LLC, I believe yoy would be subject to the TX Franchise tax which is essentially a GR tax, tho I’m not very familiar with it but know that sole proprietorships are exempt, not SMLLCs.

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This ^

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Don’t forget that you have to pay the full FICA amount (15.3%).

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IDK about min wage but my dad is a truck driver and has an s-Corp and pays himself w-2 wages of $750/week based on recommendation from his CPA.

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Where do you plan to reside?

I live in Texas

What is the contract role?

I believe to duct expenses you will need to be paid as a 1099 employee, not W2. Be careful with this.

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