Create an LLC and elect to file as S-corp status for tax purposes. You pay yourself a fair salary (so that IRS will be content) and the rest can be considered pass through income taxed only at your income bracket.
For example, say you earned 300k last year. A fair salary for a developer might be 70k. You pay income tax and self employment tax on the 70k but only income tax on the remaining 230k.
I am not your lawyer or accountant so take the above advice with caution.
For example, say you earned 300k last year. A fair salary for a developer might be 70k. You pay income tax and self employment tax on the 70k but only income tax on the remaining 230k.
I am not your lawyer or accountant so take the above advice with caution.