I do freelance translations from home, with yearly income of around $15000. I live in Miami, Florida. With that income size is it worth opening S corp for tax purposes or shall I continue filing self -empl. taxes (based on clients 1099s) at the end of the year with my income tax return (joint with husband). Thanks for help. Anna
Only you can decide if the difference in self employment taxes (if any) would be worth the cost of establishing, maintaining and the additional tax return. In most cases, the benefit of creating a liability shield with a corporation for the operating business activity outweighs the tax difference.
It's a personal decision. The corporate form provides certain legal protections, but may be offset by accounting and record-keeping headaches. It depends on a variety of factors as to which way may be best for an individual to go; there isn't one "right" answer.