I am discussing a full-time consulting arrangement with a company. I have not done this before. I am considering the following options. I know a lot about how 1 works, and just a passing familiarity with the other two. I do not know all the tradeoffs among them, such as tax advantages.
[ol]
[li]1099 (self-employed)[/li][li]S Corporation[/li][li]LLC[/li][/ol]
I am reasonably sure a C corporation would make no sense for an individual consultant.
I am also open to “get an accountant/attorney” if that’s what I need to do. Any info/advice welcome.
Disclaimer: IANAAccountant.
I’d roll with an LLC vs an S-corp, given that it’s just you running the entire show.
If my accountant is not a complete buffoon: an S-corp requires more overhead from an operations requirements and tax filing complexity than an LLC, and as a single operator (no employees or shareholders) it will function as a pass-through entity from a tax standpoint, so no real tax advantage either (all depending on income and expenses of your specific type of business). Also, you’ll need liability and workmans comp insurance for your corp. Don’t let it worry you. It’s about $500/yr for $1M coverage. Business expense.
But again, consult an expert. One will be along any minute now… 
I’ve got a 2-person company and we’re an LLC. Everything goes through the LLC and I get a paycheck with all the requisite taxes taken out (I write that paycheck myself!) and one goes to my partner.
Yes we do have to pay workman’s comp, and unemployment, and in Ohio Commercial Activity Tax but it’s a miniscule amount.
Every month and every quarter I have to file payroll taxes and whatnot.
I do a lot of it myself or with the help of Quickbooks but I also have an accountant that follows up with me every quarter to make sure I’m filing the right stuff, and they’re also on hand for questions, and they do my yearly company income tax.
We had an attorney set up our LLC way back when.
I don’t really know the difference between the different types of companies but I will say that it’s been very nice to have this clear line between me and my company. When it comes down to it I am paid a check just like if I worked at a 1000-person company. It seems to me that other company setups can leave you vulnerable to messing up and getting on the bad side of the IRS.
So are you an LLP, or is the other person considered an employee of your LLC?
Do you find there is a tax advantage to leaving part of the income in the LLC, vs treating it as a pass through entity for all the incoming receivables?
My partner and I are both employees of the LLC.
I know nothing of the tax advantages, to be honest. I just know that the accounting is pretty straightforward.