Kizzy Hett: Your customer does not hire you. They contract with the corporation you own to have it supply a service. Then you, as an employee of the corporation you own, do the work for the customer as an employee of your corporation.You are not a freelancer and are not hired by the other company, you are an employee of your corporation and that corporation contracts with the other customer.Yes, this sort of relationship is done for cost savings and also tax benefits.Personally I never used an S-Corporation, I use a special type of C corporation, much simpler and requires no IRS filing. Since you'd probably only work for salary and wouldn't be paying dividends there's no real reason to do S corporations.In fact, ever since the LLC was created the S corporation became essentially obsolete since you get all the benefits of an S with an LLC plus there's no citizenship restrictions on members of an LLC which there are with an S, and anything paid to an LLC is treated as in! come either by the single member or as partnership income by the members for a multi-member LLC....Show more
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment