Sole-proprietor vs employee
I'm a web programmer in WA state. I'm single and in my mid 20s with no dependents.
Recently, I made a decision to move to CA and informed my employer.
After talking some time with my boss, I decided to stay working for the current company at least until I get super busy with an other company if i get employed with one. I got asked whether to continue working as employee or sole-proprietor (more of a vendor or contractor).
There's obviously difference in tax impact between the two options and I'm not sure which one suits best for me. I do have to take tax impacts seriously since the rates are enormous given the life style that i'm currently in (single, mid 20s, no dependents etc..). My boss suggested that i stay as employee because with sole-proprietorship i would get taxed business tax+income tax...
However, considering what i do for work, i do get to work as freelancer time to time and I intend to increase the volume of the freelance work after i move to California.
I hope you see my dilemma and can offer some insight..
Thank you in advance for any advice, comments, suggestions..
Last edited by mng1986 : 02-09-2013 at 09:53 PM.