Legal Question in Tax Law in Nevada

Incorporation

Should an independent software consultant (independent contractor) incorporate himself?


Asked on 6/03/05, 12:02 pm

1 Answer from Attorneys

Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: Incorporation

Probably not. The better choice in most states would be to set-up a Limited Liability Company. This is a disregarded entity for Federal tax purposes. The LLC "member" would simply file a Schedule C as part of the 1040 rather than an 1120 Corporate Income Tax Return. Please see my web site http://www.taxesq.com/ for more information on the best legal choice of entity.

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Answered on 6/03/05, 5:50 pm


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