working on a w2 vs registering your own llc and running payroll on it

[nallajamoon]

edi betteru?

GC unnollaki. asking for my brother he has GC. 

[BeautyQueen]

7 minutes ago, nallajamoon said:

edi betteru?

GC unnollaki. asking for my brother he has GC. 

+1

It will be helpful to me as well

[Joker_007]

asalu emi saadhinchukovali anukuntunnavu... Dabbulu saving or Mesthri avudamana ?

[nallajamoon]

6 minutes ago, Joker_007 said:

asalu emi saadhinchukovali anukuntunnavu... Dabbulu saving or Mesthri avudamana ?

for my brother baa but yeah i will work on his company's payroll then. also mestri dhandha veelayithe nadupudamani but it's over saturated now right

[JambaKrantu]

My brother in law used to work as a contractor on 80/20. After he got GC he registered his own company and started running payroll through that company. He said it is usually not that beneficial. 

Currently out of 80-20. You get 80%, on top Mestri pays 8.8% for payroll taxes and health insurance and other things will cost another 2 to 3%. So mestri makes around 8 to 9%.

 

If you run your payroll you will save this 8 to 9% but health insurance you have to buy outside which is very expensive. Also you have to hire ADP or a CPA to run the payroll and submit taxes which is another headache and it costs money also. So may be you will make 5% more. That's it. 

Loans are also hard to get for self employment from what he told me.

[tacobell fan]

1 minute ago, JambaKrantu said:

Loans are also hard to get for self employment from what he told me.

This is a very big deal because when you have your own company, you don't have W2 to show you have fixed income. I know few people who did this mistake and now when they have money they need to beg others as guarantor when buying home.  

[JambaKrantu]

13 minutes ago, tacobell fan said:

This is a very big deal because when you have your own company, you don't have W2 to show you have fixed income. I know few people who did this mistake and now when they have money they need to beg others as guarantor when buying home.  

Yes my brother in law had a very hard time when he applied for a home loan in India. He moved back to Mestri again from Jan 1st this year after two years of running his own payroll.

[nallajamoon]

2 minutes ago, JambaKrantu said:

Yes my brother in law had a very hard time when he applied for a home loan in India. He moved back to Mestri again from Jan 1st this year after two years of running his own payroll.

baa i have no problem with health insurance wife can add him on to her's so that's covered. plus for loans don't need guarantor she makes around 200k herself she's a dentist. so in this case it is better for him antava

[JambaKrantu]

6 minutes ago, nallajamoon said:

baa i have no problem with health insurance wife can add him on to her's so that's covered. plus for loans don't need guarantor she makes around 200k herself she's a dentist. so in this case it is better for him antava

Then you will make 7 to 8% more compared to what you are making now. You can decide if it is worth the effort based on your situation.. 

[JambaKrantu]

Also when you open your own company you will have to wait for the payments from.the vendor which will be around 45 days after the month. So January payment you will get on March 15th and so on.. Mestri's normally have line of credit with the bank and they will pay before getting the payment from the vendor.

[alpachinao]

3 minutes ago, JambaKrantu said:

Also when you open your own company you will have to wait for the payments from.the vendor which will be around 45 days after the month. So January payment you will get on March 15th and so on.. Mestri's normally have line of credit with the bank and they will pay before getting the payment from the vendor.

Calling @JANASENA neku kavalisena info ekkada vundi vachi tagaledu