Doing Freelance work, should I open my own business or have them pay me directly - Tax Implications?

Question

I'm doing some freelance work for abouty $8,000. Should I register a business and have the pay directed to the business, or should I just have them pay me directly. From a tax point of view, which is preferable?

Answer 1

I also freelance and get paid under my own name.
In the past, I have operatied as a corporation and as a proprietor. I prefer proprietor for it simplicity. Of course, you must keep a detailed record of expenses, pay your estimated taxes quarterly and file your annual taxes using 1099 forms from each client. If there is a liability issue, you may want to consider a LLC which lets you operate as an individual but offers some limited protection.

Answer 2

It won't make any difference tax-wise.

If you're doing limited freelance work it's probably not worth the expense of setting up a business such as an LLC or S-Corporation. Both of those entities' income pass directly to your Individual Income Tax Return and therefore give you no tax benefit.

Answer 3

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