Yeah, it's how I handle contracts.

Almost everything is deductible.

He should talk to an accountant and lawyer to make sure he gets out right.
On Feb 28, 2014 9:46 PM, "C. Hatton Humphrey" <[email protected]> wrote:

>
> Need to get some feedback on a concept that a friend of mine is
> considering.  He's a graphic designer working for a company right now and
> is considering switching to contract work.  Someone suggested that it would
> make more sense tax-wise to form a S-Corp, pay himself as a W2 employee and
> then claim the rest as corporate dividends.
>
> Anyone else do this before?  I'm not an accountant and have suggested he
> talk to one.  Unfortunately my own experience in the contract world is out
> of date and I mainly did it as a 1099.
>
> He's a good friend and I don't want to see him mess himself up.
>
> Until Later!
> C. Hatton Humphrey
> http://www.eastcoastconservative.com
>
> Every cloud does have a silver lining.  Sometimes you just have to do some
> smelting to find it.
>
>
> 

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