Just in case you aren’t aware, an LLC has the option to be taxed as an S-Corp which can be beneficial tax-wise depending on her income level. There is more paperwork involved because she would have to run payroll for herself, but it can be worth it. Theoretically, your accountant would recommend this if it would be beneficial for you, so hopefully, this isn’t news to you guys, but if so, it may be worth exploring.
No, this is not news to us - our accountant has certainly mentioned it - but there’s a lot of oddities in her situation that make this a little more difficult - like the fact that she’s not an actual freelancer but it’s just the compensation startegy that this grant-funded project she works for was built around.
Its not impossible though, and certainly something we need to look more into. Thank you for bringing it up especially for anyone else looking at this in a similar situation.
Just in case you aren’t aware, an LLC has the option to be taxed as an S-Corp which can be beneficial tax-wise depending on her income level. There is more paperwork involved because she would have to run payroll for herself, but it can be worth it. Theoretically, your accountant would recommend this if it would be beneficial for you, so hopefully, this isn’t news to you guys, but if so, it may be worth exploring.
No, this is not news to us - our accountant has certainly mentioned it - but there’s a lot of oddities in her situation that make this a little more difficult - like the fact that she’s not an actual freelancer but it’s just the compensation startegy that this grant-funded project she works for was built around.
Its not impossible though, and certainly something we need to look more into. Thank you for bringing it up especially for anyone else looking at this in a similar situation.