Full Time RV living as a S Corp/1099 employee
First post here so thanks for any and all opinions/comments! Long story short, I have the opportunity to sell my home and buy an RV to go travel full time while working in a virtual job. Timef...
Forum Discussion
I think you might determine exactly what your objectives are before doing anything else.
In my prior life, I can't count the number of times I found myself facing a client that wanted to employ a complex solution (one their buddy used) to respond to a simple problem.
Can you form an entity (NewCo, Inc) that will provide your personal services to clients/customers? Yes. Manufacturer's reps do this all the time.
Will payments to NewCo, Inc. be reported on Form 1099Misc? No, only payments made to individuals (and their DBA) totaling $600 or more are reported on Form 1099Misc. Payments to S-Corps, C-Corps, Partnerships, and Trusts are NOT reported on Form 1099Misc.
If NewCo, Inc. is based in Florida can an employee (you) represent NewCo, Inc. in other states? Yes and no. Regulations in other states may require licensing, registering, and even taxation of the business conducted within their state.
If you conduct all your business online does that change things? Yes, not having a physical presence in other states can be key in avoiding jurisdiction of other states--mandating you to be licensed, registered and taxed in their state.
Can you avoid paying self-employment tax or Social Security tax (FICA) on payments made to you individually? Yes and no. It depends on the entity type and characterization of the payments.
Are dividend payments from retained earnings paid by a S-Corporation double taxed? Not really. Subject to FICA tax? No.
....paid by a C-Corporation double taxed? Usually yes. Subject to FICA tax? No.
Are profits paid by a partnership to the general partners subject to self-employment tax? Yes if the general partner is an individual. Usually no if the general partner is another entity.
Are profits paid by a partnership to a Limited Partner subject to self-employment tax? Never.
Can a S-Corporation be a partner in a partnership? Yes.
Can a partnership be a shareholder in a S-Corporation? No.
Can a partnership be a shareholder in a C-Corporation? Yes.
In my prior life, I can't count the number of times I found myself facing a client that wanted to employ a complex solution (one their buddy used) to respond to a simple problem.
Can you form an entity (NewCo, Inc) that will provide your personal services to clients/customers? Yes. Manufacturer's reps do this all the time.
Will payments to NewCo, Inc. be reported on Form 1099Misc? No, only payments made to individuals (and their DBA) totaling $600 or more are reported on Form 1099Misc. Payments to S-Corps, C-Corps, Partnerships, and Trusts are NOT reported on Form 1099Misc.
If NewCo, Inc. is based in Florida can an employee (you) represent NewCo, Inc. in other states? Yes and no. Regulations in other states may require licensing, registering, and even taxation of the business conducted within their state.
If you conduct all your business online does that change things? Yes, not having a physical presence in other states can be key in avoiding jurisdiction of other states--mandating you to be licensed, registered and taxed in their state.
Can you avoid paying self-employment tax or Social Security tax (FICA) on payments made to you individually? Yes and no. It depends on the entity type and characterization of the payments.
Are dividend payments from retained earnings paid by a S-Corporation double taxed? Not really. Subject to FICA tax? No.
....paid by a C-Corporation double taxed? Usually yes. Subject to FICA tax? No.
Are profits paid by a partnership to the general partners subject to self-employment tax? Yes if the general partner is an individual. Usually no if the general partner is another entity.
Are profits paid by a partnership to a Limited Partner subject to self-employment tax? Never.
Can a S-Corporation be a partner in a partnership? Yes.
Can a partnership be a shareholder in a S-Corporation? No.
Can a partnership be a shareholder in a C-Corporation? Yes.
