Form a corporation or doing business as in Calif. for best tax strategy?
Posted on December 1, 2008 by admin
ItalianScientist asked:
If living in CA, and one is making an income of over 100,000 a year on a 1099, what is the best plan for ease of taxation in consideration of the new, soon to be new and current tax laws.
If living in CA, and one is making an income of over 100,000 a year on a 1099, what is the best plan for ease of taxation in consideration of the new, soon to be new and current tax laws.
Do not form a corporation to avoid paying taxes. California taxes you a minimum of $800 a year for even having the corporation.
The IRS is cracking down on people trying to use s-corps to try and avoid paying fica/mc taxes (eg, all income from single member s-corps will soon be subject to se taxes).