|
I am and have been requested to do some consulting and small logistics/operations management for a few larger companies (not competitors), with enough interest that I want to give it a go on the side. If it blossoms and I can do it full time? Awesome. But in the meantime, I'm going to keep my current job and pick and choose projects/consultant requests. So. I will be obtaining a business license (likely an LLC, S corp unless someone can talk me out of it), federal EIN, business bank account. I will need to claim a vehicle (plus associated expenses), cellular phone, laptop, and a few other items as business expenses. Questions: 1) It will be in my wife's name with one employee: Me. How do I pay myself in terms of the business? What about income taxes for her? Is it even worth putting in her name just for the possible future benefits of "minority owned" business? 2) Since it will be me, is an LLC, S corp the right way to go? I expect revenues the first year to be about 20,000 USD. 3) Any recommended small business accounting software for invoice generation, paying myself, and taxes due to Uncle Sam? Any advice in starting what is a one man consulting business would be appreciated.
|
# ? Jan 29, 2015 05:00 |
|
|
# ? Mar 29, 2024 12:16 |
|
I'm curious why you are considering structuring this as an S Corp. For simplicity, I think a single-member LLC would be a good way to set up your small consulting business, at least in the beginning. This would solve your "how do I pay myself" question, since everything would get reported on your schedule C. If you are going to continue working at your current job, you can fill out a new W-4 and have them withhold more if you don't want to worry about sending in quarterly tax payments.
|
# ? Feb 1, 2015 15:40 |
|
There should really be a consulting megathread. I am fairly new to this world myself; otherwise I'd write it up right now.
|
# ? Feb 26, 2015 17:47 |