Consulting - individual or business Hello all, great forum, lots of useful info!
I've been searching here and other places for a while but cannot seem to find an answer (or even if there is an "easy" answer at all) to my constant tax dilemma/confusion.
Is there a rule of thumb for when it makes sense to start a consulting business vs receiving payment as an individual work-for-hire? In other words, would there be tax benefits if I started a consulting business instead of getting paid in my name?
Married, filing jointly (spouse does not work), two kids, my income from the regular job is $85,000, plus the consulting gets ~$30,000.
If I start a consulting business and get paid under the business name, would I be able to take advantage of any tax benefits? Is there a quick way to tell or does it need to be a comprehensive financial advisor type of analysis?
Thanks in advance for any advice! |