Chris York

Chris York

Founder at Cognitive Digital Joined over 7 years ago

  • 0 stories
  • Posted to Freelancers: Sole proprietorship vs LLC vs S Corp? , Dec 16, 2016

    It depends on a few things, like how much money you make, if you have partners, what you plan to do with the business in the future (e.g. raising VC money), etc.

    But hypothetically, let's say you're a one-person shop and are making good money—an LLC electing to be taxed as an S-corp is may be the best fit for you.

    This adds very minimal complexity to your taxes (especially compared to an S-corp) and will likely save you a lot of money through avoidance of self-employment tax. For example, if you make $150,000 as a freelance designer and are a sole proprietor, you'd pay a ~15.3% tax on that income. If you had an S-corp or LLC with S-corp election, you could pay yourself, say $70k (or whatever is a reasonable salary for your location/services/experience) and claim the rest as a dividend. You would not pay the self-employment tax on the dividend, which would save you over $12k. The total cost of this would be a couple hundred a year to an accountant and/or tax attorney, which are write offs, and to the state for fees. In most states, the setup cost will be a few hundred dollars (California is particularly nasty and it's around $800 to set up and the same annually going forward; most states are $100-400).

    One specific note here: to do this correctly, you need to pay yourself a salary through some kind of payroll software, like Gusto ($45/mo).

    3 points
  • Posted to What are some useful web survey applications?, Sep 09, 2014

    Typeform is the best.

    0 points
  • Posted to TETHR – Free mobile template from Invision. , Sep 05, 2014

    FYI this only gives you the Photoshop (AKA completely useless) version of these assets. If you want Sketch, you have to buy it from UI8 for $80 or whatever.

    0 points
  • Posted to Site Design: Omnisense - Experience, Jul 27, 2014

    The premise of this first 'test' is kind of dumb. In an emergency situation you'd just give someone O- blood without checking their blood type.

    0 points
  • Posted to What is your favorite font for displaying numbers? , Jul 25, 2014

    used Tungsten recently for a design and it came out pretty nice...

    0 points
  • Posted to This Cruel Pavlok Bracelet Shocks You To Exercise, Jul 25, 2014

    This seems to not be the smartest way to design a solution to the problem of self-discipline, both in terms of psychology (negative reinforcement being ineffective over time) and in terms of user experience (using punishment seem unpleasant, even if the user essentially signs up for it).

    0 points
Load more comments