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Originally Posted by StillFocus
I'm not sure where you're getting that once you form an LLC you're suddenly subject to a higher tax rate. You file everything on your personal tax return as though you were an employee of the company, there is absolutely no difference whatsoever.
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Sorry, I worded that poorly. I basically meant that you'd be paying tax as an employee (for yourself) and as the owner (for the business). Between that and higher insurance rates and social security payments and the like, you take home a
lot less of your $48k self-employed than you do at a job in a company.
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In fact, you'd probably see your tax liability decrease pretty significantly because of the windfall of new business expenses you get to write off.
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You'd still have a lot of tax to pay for the business, too. It all adds up.
But, particulars aside, the point was simply that $200/job (not even per day, as the thread incorrectly presupposes, because some jobs span multiple days) is not enough money for anyone trying to build a career in photography (which is to whom the original statement was intended).