I am considering incorporating for the obvious tax breaks and increased income. My concern is - Does a nurse qualify as an independent contractor per the IRS guidlines? I have been on many sites including the IRS and still don't have a clear answer. I have also read about Qualifing Personal Service Corporations that are taxed at a flat 35%. The question is: Do you spend 95% of your time in performing the service for the client? If the answer is yes then are we trapped in the 35% tax? The professionals listed for this were accountants, lawyers, healthcare professional such as physicians, nurses and radiologists and PT and OT.
Can anyone clear this up for me? I'm still learning but I DEFINITELY want to get it right!
Thanks.
MERRY CHRISTMAS TO ALL!