CPA or any business/tax savvy people

as the title puts it, I need some advice from a CPA or a tax/business savvy person.

i will be switching careers from an independent contractor (1099), to what I think will be an employee for a company. will be making the move from Houston, Texas (state with no state income tax), to Louisiana, a state that will have income tax.

the new company that I will be working for offered me a salary, 401K after a year, gas/mileage allowance monthly of $500, monthly incentives for growth and new clients, year end bonus, but will have to pay for my own health insurance. my question is, should i create another LLC in Louisiana, to help out with tax breaks and what not of an independent contractor, or should I just do it under my personal name/ssn?

i am looking for a CPA in Louisiana, that can answer this before I ink the contract. I can always change the contract afterwards, just wondering if anyone has any advice on my current situation.

thanks!

RC Cola,

I'm not a CPA, but I'm curious how you think an LLC would help if you're not 1099'd anymore. Maybe I misunderstood, are they offering employment or 1099? Like you get to choose?

Anyway, on a side note, hate to see you leave Texas, but I understand. At least they have good gun laws there.

Was this move planned or a result of Harvey? Hope someone reaches out to you with answers.

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Originally Posted by RaginCajun

as the title puts it, I need some advice from a CPA or a tax/business savvy person.

i will be switching careers from an independent contractor (1099), to what I think will be an employee for a company. will be making the move from Houston, Texas (state with no state income tax), to Louisiana, a state that will have income tax.

the new company that I will be working for offered me a salary, 401K after a year, gas/mileage allowance monthly of $500, monthly incentives for growth and new clients, year end bonus, but will have to pay for my own health insurance. my question is, should i create another LLC in Louisiana, to help out with tax breaks and what not of an independent contractor, or should I just do it under my personal name/ssn?

i am looking for a CPA in Louisiana, that can answer this before I ink the contract. I can always change the contract afterwards, just wondering if anyone has any advice on my current situation.

thanks!

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I don't see any reason to form an LLC since you are employed and they are giving you a mileage per dium. I don't believe it will give you any tax breaks since since your company will be taking the mileage credit.

I can't comment on your tax situation. However, when I was a consultant in Ukraine I bought my own health insurance on the international market, and was only paying $200/mo from CIGNA Global for full comprehensive coverage. The international market is not as convoluted as the US marketplace. The issue is seeing if you can get coverage in your country of register. Might be worth a try.

Thanks gents. I am awaiting word from them to see what type of employee will I be, a 1099, or a W-2. I think that will answer my question. I also want to add in a clause in my contract once established, that says if I bring in X (say $1,000,000) worth of business, that I will get some type of equity in the company. I have a few connections in the medical industry that can probably help me out. Who knows, worth a shot I figure.

I have had to carry my own health insurance for the past 6 years so shouldn't be an issue. Too bad that it went up every year since I've had it and had to change companies 4 times within those 6 years.

I am positive a LLC will not help with your taxes. The only thing a LLC really helps with is liability concerns in case of a lawsuit or legal issues. All taxes from a LLC still are run through your personal tax return.
I started an LLC for my rental properties just for the liability protection.

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Originally Posted by austinite

RC Cola,

I'm not a CPA, but I'm curious how you think an LLC would help if you're not 1099'd anymore. Maybe I misunderstood, are they offering employment or 1099? Like you get to choose?

Anyway, on a side note, hate to see you leave Texas, but I understand. At least they have good gun laws there.

Was this move planned or a result of Harvey? Hope someone reaches out to you with answers.

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move was not planned, just kind of happened when applying for jobs from Houston/Austin to New Orleans. found something a lot safer than oil and gas work

yeah, i hate to leave here, its been really good to me. your mom and you are welcome over anytime! we can wrestle gators!

Quote:

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Originally Posted by diesel101

I am positive a LLC will not help with your taxes. The only thing a LLC really helps with is liability concerns in case of a lawsuit or legal issues. All taxes from a LLC still are run through your personal tax return.
I started an LLC for my rental properties just for the liability protection.

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correct, i have my LLC for the liabliity issues.

i also was able to get tax breaks for my vehicle and what not, vehicle weighing over 6,000 lbs. i was able to write off the whole truck purchase which me helped me with my tax burden for that year. other than that, i cannot thing of too many instances if helps.

looks like i will be an employee instead of a contractor so no need for the LLC

thanks for all of the replies gents!

may your balls be mighty!