USA Tax question - resident in USA, but billing UK clients
May 27th 2016, 11:18 pm
#16
Grumpy Know-it-all
Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
Re: USA Tax question - resident in USA, but billing UK clients
You might want to look into different forms of setting up your business, there's lots of info at www.sba.gov
Being self-employed sole proprietor is the simplest though. Don't let accountants blind you with BS about setting up corporations and so on. It might make sense to have an S-corporation, accountants will tell you this because there are ways of avoiding the payroll taxes by paying yourself a dividend but as I explained in the other thread, not a good idea to avoid payroll taxes really. Not until you've got the 40 qualifying quarters for Medicare at any rate.
Get the hang of it first before you try being clever with it.
Being self-employed sole proprietor is the simplest though. Don't let accountants blind you with BS about setting up corporations and so on. It might make sense to have an S-corporation, accountants will tell you this because there are ways of avoiding the payroll taxes by paying yourself a dividend but as I explained in the other thread, not a good idea to avoid payroll taxes really. Not until you've got the 40 qualifying quarters for Medicare at any rate.
Get the hang of it first before you try being clever with it.
