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shadow_chance t1_j6lblrl wrote

Reply to comment by Commercial-Pair-3593 in LLC and W2 earnings an income tax question. by Commercial-Pair-3593

You still end up with more money though. If you quit your W2 job, you'll be in the same position as them.

You also know how tax brackets work right? You only pay that bracket's % on income in the bracket. You don't pay 22% on everything.

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Commercial-Pair-3593 OP t1_j6lcivh wrote

Sure but it means I have to charge more to make the same profit as them.

I understand how it works, taking on a side job means that it effectively starts being taxed at 22%.

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shadow_chance t1_j6ld2kd wrote

I don't really get that perspective but if it works for you...

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