Ask HN: Starting a company for my contract work in US?
Hi, I am in the US (east coast) and have done chunks of contract work before and gotten 1099s, and paid a bunch of taxes and never claimed any work expenses.
Can anyone give advice about what is the smart way to collect contract income? I am also upgrading some work hardware currently which is expensive. I've heard anecdotally that some small businesses only pay tax on profit. I am hoping there is a way to set up an "entity" for myself that pays for and owns the hardware, and then the contract payments go to the company (for which I would be an employee), and then I don't have to pay taxes on all of the income since it is covering expenses (and maybe the business keeps the money too, I'm okay with not taking that money as a salary until a later date). (But ultimately, income will outpace expenses for the year).
Does HN have any advice for an individual contractor with notable expenses?
Can anyone give advice about what is the smart way to collect contract income? I am also upgrading some work hardware currently which is expensive. I've heard anecdotally that some small businesses only pay tax on profit. I am hoping there is a way to set up an "entity" for myself that pays for and owns the hardware, and then the contract payments go to the company (for which I would be an employee), and then I don't have to pay taxes on all of the income since it is covering expenses (and maybe the business keeps the money too, I'm okay with not taking that money as a salary until a later date). (But ultimately, income will outpace expenses for the year).
Does HN have any advice for an individual contractor with notable expenses?