Question by QuestionHead: What is the perfect type of Corporation tax-wise for a current self-employed?
I am currently working an Independent Contractor at an agency for my Art Direction services. This is my main source of income. Additionally, from time to time I do graphic and video work. Now I am considering diving into Event Production as a new opportunity has come to me.
My main goal is to maximize my tax deductions as last year I paid 30% off my income. I filed as self-employed. I know the answer is incorporating but not sure as to which type of Corporation will allow me to deduct the most (equipment, furniture, car, insurance, food, travel, hiring other independent contractors, etc – can’t think of any thing else). This is money that is currently getting out of my pocket – after taxes -. Any recommendation or past experiences?
Just a side note.
As an Independent Contractor my car expenses were only $ .44 cents per mile. Apparently, if incorporate more is deducted (car payment, gas, insurance oil change, etc).
Answer by dredma1
I think that an LLC is the best – it is flow through taxation which means that you will be taked only – not you and the corp.
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