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Hello,
I am a new Radiology attending near NYC. I get paid most of my income as a W2 – a little over $400k. Aside from that, I will be earning extra income for moonlighting on the side as well as locums work as a 1099. I am hoping it will bring in an extra $50-$100k per year. I am also getting income from a high interest loan which is bringing in an additional $63k (1099-Int).
I am trying to figure out if I should open an LLC and file as a S-corp.
Most posts discus the differences between getting paid as a W2 or 1099, or if to file as a solo proprietor or s-corp. I haven’t come across much information regarding how to address the “extra” income when I am already a high earner as a W2.
I was reading that it may actually cost more to file as an s-corp being that I would have already maxed out my social security tax and I will need to pay social security on my income as an s-corp. Would I be phased out of the pass-through deduction because of my W2 income, or is it a separate calculation? Could I pay myself “less” than the going physician rate on my 1099 to save on the payroll taxes? What other factors do I need to consider? How much do I need to make as a 1099 above my W2 income to make it worth creating an LLC and filing as an S corp (especially after factoring in the costs and hassle)?
Assuming I will pay similar taxes, are there any deductions that I can make as an LLC that I can’t take as a solo proprietor (i.e. home office, second car, etc)? I know that there are other advantages like opening a solo 401k. It would be something that I would be interested in exploring. But at least for the very near future, I don’t think I would be able to max out my other retirement accounts.
I am new to the WCI community and have only recently realized the importance of being financially savvy. I erroneously thought that once I became an attending all my financial woes will melt and I will be able to easily pay off my student loans, save, and pay for a ton of stuff. I am learning that the light at the end of the tunnel is just another larger tunnel.
I have about $200k in student loans, $260k in a HELOC, $60k in IRA investments, $3k in a 401k. I am renting, drive a simple car, married to a PA (currently not working). I have 5 kids and expecting a 6th in a few months. My largest expense is ~$60k a year for private school (for religious reasons). Public school is not an option.
There is a lot of wisdom and experience on WCI. Any suggesting or advice would be greatly appreciated.
I am a new Radiology attending near NYC. I get paid most of my income as a W2 – a little over $400k. Aside from that, I will be earning extra income for moonlighting on the side as well as locums work as a 1099. I am hoping it will bring in an extra $50-$100k per year. I am also getting income from a high interest loan which is bringing in an additional $63k (1099-Int).
I am trying to figure out if I should open an LLC and file as a S-corp.
Most posts discus the differences between getting paid as a W2 or 1099, or if to file as a solo proprietor or s-corp. I haven’t come across much information regarding how to address the “extra” income when I am already a high earner as a W2.
I was reading that it may actually cost more to file as an s-corp being that I would have already maxed out my social security tax and I will need to pay social security on my income as an s-corp. Would I be phased out of the pass-through deduction because of my W2 income, or is it a separate calculation? Could I pay myself “less” than the going physician rate on my 1099 to save on the payroll taxes? What other factors do I need to consider? How much do I need to make as a 1099 above my W2 income to make it worth creating an LLC and filing as an S corp (especially after factoring in the costs and hassle)?
Assuming I will pay similar taxes, are there any deductions that I can make as an LLC that I can’t take as a solo proprietor (i.e. home office, second car, etc)? I know that there are other advantages like opening a solo 401k. It would be something that I would be interested in exploring. But at least for the very near future, I don’t think I would be able to max out my other retirement accounts.
I am new to the WCI community and have only recently realized the importance of being financially savvy. I erroneously thought that once I became an attending all my financial woes will melt and I will be able to easily pay off my student loans, save, and pay for a ton of stuff. I am learning that the light at the end of the tunnel is just another larger tunnel.
I have about $200k in student loans, $260k in a HELOC, $60k in IRA investments, $3k in a 401k. I am renting, drive a simple car, married to a PA (currently not working). I have 5 kids and expecting a 6th in a few months. My largest expense is ~$60k a year for private school (for religious reasons). Public school is not an option.
There is a lot of wisdom and experience on WCI. Any suggesting or advice would be greatly appreciated.
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