IncorporationShould an independent software consultant (independent contractor) incorporate himself?
Reply:Probably not. The better choice in most states would be to set-up a Limited Liability Company. This is a disregarded entity for Federal tax purposes. The LLC "member" would simply file a Schedule C as part of the 1040 rather than an 1120 Corporate Income Tax Return. Please see my web site http://www.taxesq.com/ for more information on the best legal choice of entity.