The most sophisticated approach is to calculate IRR as @Ben Leybovich mentioned.

Of course, you could operate as a sole proprietor (which is what you’re effectively doing now) under a DBA and get an FEIN to use on a 1099 instead.Tax considerationsProbably the best benefit is to be able to avoid payroll taxes on a percent of your income by paying dividends under an S-Corporation.

Anyone more sophisticated than I in this have any input for us?

So a tradesman might earn 1/3 less working retail but he was working a full 40 hours a week, as opposed to losing time between jobs and weather delays.When HD hired a CEO from GE (back in '00 IIRC) he looked at payroll and said to cut it, so today 1/2 the people in our HD could just as well be working as greeters at Wal-Mart.It's often not the "big things" where they get you.

Back on task, I initially figured in 35% addition to payroll to cover benefits.

Personally, I imagine that employee labor is just as expensive as sub-contractors if you're not tremendously optimized in your business.I think this is very true, in that when you hire employees you explicitly have to pay all the "loading" charges of those employees.Contractors, on the other hand, can frequently be retained for less due to competition among competing contractors, as well as lack of business sophistication on the part of many contractors in pricing their services (i.e. they don't necessarily understand/quantify and build in all of their hard/soft costs, a prime example being the true cost of longer-lived items like tools and vehicles).

I didn't read anything about being accredited for Techvestor.Accredited investors are those individuals classified by the SEC asqualified to invest in complex or sophisticated types of securities.To become accredited certain criteria must be met, such as having an average yearly income over $200,000 or working in the financial industry.Sellers of unregistered securities are only allowed to sell to accredited investors, who are deemed financially sophisticated enough to bear the risks.Accredited investors are allowed to buy and invest in unregistered securities as long as they satisfy one (or more) requirements regarding income, net worth, asset size, governance status, or professional experience.Unregistered securities are considered inherently riskier because they lack the normal disclosures that come with SEC registration

To be blunt most in the small fry real estate world simply aren't sophisticated enough to account for risk in their dealings.

the state payroll and sales tax is your weak link you can bounce back from the others.. but those are not discharable in BK.. they stick with you.. this is water under the bridge but it would have been better to pay the tax's you owed and BK the rest. and then start over.. be careful.. those are serious debts.

Just depends on your sophistication/risk tolerance and how good a deal.Good luck.