Employee Vs Self Employed

[Rich Hupper]

Why would a single filer full time employee for ABC company making 100k per year in the 28% tax bracket

Ever want to becoming self employed and have to start paying self employment tax? 

So basically 28% + 15%?

What is the advantage to being self employed?

Because right now I am having a hard time figuring that out. Since lenders and landlords do not like them.

[David Dachtera]

@Rich Hupper,

You'll want to bounce that off of a tax accountant. Done right, you can pay yourself using what's known as a salary / dividend split so you, for example, take one-third of your draw as salary and pay SUTA, FUTA, FICA, etc. on it and take the other two thirds as dividend which only incurs income tax as ordinary income.

You don't really want to be self-employed, anyway. You want to be in control of a business and have the business pay you as an employee using the salary / dividend split.