That reminds me, I should look at the differences between a LLC and a S Corp. Many lawyers I know are LLC’s (limited liability corporations)and not Sub S Corps. I’m sure there’s a reason for that but I’m not an accountant so it’s not something I know for sure.
Almost everyone I knew told me that if I did independent contracting I should form a LLC. Mike, my lawyer, told me he could make a lot of money just pushing the LLC line, but he’d be ripping me off.
He said most people are just wrong assuming that independent contractors need to form an LLC when one has no employees.
Think about it this way, your income is still your income. You can write off a heck of a lot of expenses (home office, phone lines, auto travel, etc), but you can’t hide your income from the gov.
You’d be better off getting a really good accountant.