[smileysteve]

Thanks for pointing out those issues, especially given my example.

One thing upon further thought on the 117k. Self employment and W2 in an Scorp involve paying both the employee portion and the employer portion. ~15%. The 117k limit applies only to the employee side and only to social security (not medicare/OADI).

Beyond payroll taxes, it is possible that the Scorp might be able to have some income below the additional ordinary income on tax rates. (Mostly on true if the Scorp can keep its income below 34% rate (at the ordinary income rate ~ 28% at 90-180k)

I am not an accountant, and this is not accounting advice.

[loumf]

Self employment tax (the equivalent of the employer side in W2 work) does max out at 117k.

It's complex, and I think that someone doing sidework would not benefit enough from an scorp to make it worth it. Someone doing it fulltime that makes a lot and can claim low normal wages should look into it.