Post a new topic
    2 Replies Latest reply on Jul 2, 2009 10:15 AM by bm911tax

    taxes write offs

    p_fetkvtz Newbie

      Hello everybody,


      I work as freelance interpreter for several companies around the US. At the end of the year I am getting all 1099 forms from them, do write offs, and pay my taxes.

      Just wondering are there any advantages for me to open a "company". So, this way they would hire not me as an interpreter/tramslator, but a company, which pays me salary. Are there more possibilities for tax write offs. If there are, how can to start?


      I would really appreciate any qualified advice.
      Thank you,
        • Re: taxes write offs
          Lighthouse24 Ranger
          It sounds like the heart of your question is whether or not you should continue to operate as a pass-through entity for tax purposes. I'm not an accountant, but I'll suggest that if your proposed company will have fairly steady and predictable revenue, and/or if the revenue you're generating is (or soon would be) substantial enough to place you in a higher personal tax bracket, then it's certainly worth investigating -- the main advantage being to reduce the amount of taxes you'd pay. If, however, (like most freelancers) you are a one-person entity and have revenue that varies widely from month-to-month, quarter-to-quarter, and year-to-year -- then changing your organizational structure and tax status could cause considerably more financial stress (and tax accounting work) than you have now.

          It's not a one-size-fits-all decision. There are lots of variables involved, and your best explanation of those variables and how they might apply will likely come from a CPA who understands your business management and personal financial goals. But perhaps another member with the appropriate background/qualifications will be able to offer some additional things to that you can use to self-assess/evaluate your current situation (so if nothing else, this comment will bump it up where it might be seen).

          Welcome to the community and good luck.
          • Re: taxes write offs
            bm911tax Adventurer

            Based on the info you have provide in this post it sounds like you want to save some money on taxes and looking for ways to do it. Well the good news is that there is an option of forming a Corp. By properly structuring the corp you can potentially save close to 15% or more on your taxes. It all depends on the state of incorporation, the tax classification of the corp, and the amount of income revenue you are netting. You need to have a discussion with qualified tax advisor/accountant that should be able to help you.


            Good luck,