I got an offer at T-Mobile for 95/hr on a contract to hire. Fed income taxes are going to be ridiculous. I heard that you can save money by starting an LLC and writing off "work expenses" to cut taxes down from 35% to 10%. Has anyone done this? TC 115k YOE 4y
Check S Corp
There is nothing magical about the form of ownership. Sole proprietors get deductions too.
Don't count on that... expect to get contract ended half way... we are in mega restructuring.
They said that this is a brand new team in the security division they're building out. All greenfield. What are your thoughts
Which org? Are you SWE? NWE?
If you're an independent contractor you need to get an S Corp. aka llc then elect to be taxed as an s corp. You can do a few things to save taxes. One, you can get an individual 401k plan that lets you put in up to 58k or something like that of pretax dollars a year. The s corp thing helps by paying yourself a salary rather than all of it. this way you only pay employment tax on your salary. Everything over your salary you don't pay those taxes. Next, you can write off some of your utilities if you work from home. You can write off any supplies, equipment you purchase, services, and education you need while working. So if you're smart, you can pay very little in taxes and come out on top. I paid nearly zero in taxes last year for my LLC and made about 70k from Sep-Dec last year and neted like 60ish K.
I also have an LLC and follow much of this advice. Curious, what kind of work are you doing, software development? And if so how do you manage with working full time?
I actually don't do side work now that I'm at Meta. At least for now. I just started Meta last month. After my first review I'll have a better idea of my WLB and total free time and stuff and I'll reconsider.
Probably best to hire an Accountant if you plan on evading taxes.
avoiding*
Tax evasion is the crime. Evade is the root word of evasion. Evade is a synonym of avoid.