How to Include Yourself in Order to Save Money

Independent contractor taxes, or freelance taxes, are a little confusing for sure…but with a little help, you can be using your independent status to save yourself some money.

Nonetheless, how you set yourself up to operate as an independent contractor, can make a big difference in your bottom line…

Are Taxes for Independent Contractors Better or Worse than the Average Employee?

One of the most significant benefits of being a freelancer is that you get much of the preferential tax status of being a business owner! Business owners are offered significantly greater tax benefits than a standard W-2 employee.

There are two ways an “independent contractor” or “freelancer” can be in business. They can get paid as an unincorporated 1099 contractor or can incorporate themselves and get paid to their corporation.

What Determines the Way I Get Paid?

Here are all the amazing benefits: 

You will potentially pay less self-employed payroll tax than if you are just a 1099 contractor.

Self-Employment Tax

You will be able to build business credit that won't show up on your personal credit report and affect your credit score.

Business Credit

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