I was recently offered a job as a remote therapist. Option 1 was W2 at a salary I am not thrilled with. Option 2 was 1099 at an hourly rate that seems much better.
I've been looking into the 1099 option and all I am seeing are downsides. Self-employment tax, administrative burden both seem like major financial drawbacks.
In my research I've found some business expenses that I could leverage. Plus the S Corp option that lets me defer some revenue (I think that's the right terminology) and 401k. I'm currently exploring whether this employer would switch from 1099 and contract with my business which I would set up as an S Corp. Not sure if they are willing to. Despite all of this it still seems like self employment would see less money per year given my options.
My question is, how in the world could I make the 1099 option worth it? I'm not seeing how self employment would ever pencil out for anyone. I realize all of this is super nebulous and I am actively reaching out to CPAs to get better guidance. But I need some general input while I await call backs.
Some details: my wife is W2 earner, has health insurance for the family. We have two kids. I work from home, in a 200 square foot office I built just for my business. The offer is a guaranteed full time.
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