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.
For a single or spousal owner business, this is what you’ll want to do in my opinion. You will want to create an “INC” (aka corporation) with an “S Corp” designation, or “LLC” (aka Limited Liability Company) with an “S Corp” designation.