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Thread: does this work out?

  1. #1

    Default does this work out?

    Ok, vague title, and not sure how to search this on here and on somewhat of a time crunch... so I'm very appreciative of any advice or links.

    Basic situation is that I had started an LLC in Florida a few weeks ago in preparation of perhaps moving that way. In the meantime, I was offered a pretty sweet job with a friend who owns a company, he'd pay my LLC. The money is a pretty significant raise from my current W2 job not taking anything else into account.(+50% increase). Searching online makes my head spin and as most accountants are, mine is super busy at the moment and I'm not sure when I can get in to see him.

    Now, I know there are things I can write off, etc, so if someone can help me figure out what those are and help be able to confirm with some sort of an estimate that i'll come out ahead in the end with this job and my own company vs my current W2 job.

    Sorry for not searching and I hope someone can help, I probably have to have a decision on if to do this within 36-48 hours.

    Thanks!

  2. #2
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    50% more is hard to gauge because it could be 50% of $5000. But it's likely enough to cover the additional ~8% in taxes that self-employed people pay over other people + the additional cost of your own benefits (health, retirement, etc.). Make sure you know what your health insurance costs will be, since those can vary pretty dramatically depending on which insurance company you call.

  3. #3
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    It will be enthusiastic to have the individual to determine whether it could be of service gradually related to the business you have.

  4. #4
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    You might also want to have the friend check the IRS guidelines for an employee vs a 1099 independent contractor. It sounds like he intends to treat your LLC as in independent contractor and if the IRS doesn't agree that you are an independent contractor he could be hit with some big fines and penalties.

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