I'm in WA... Here it's a simple matter to register an LLC. There are registration "kits" available in Barnes and Noble or Amazon with the Articles of Incorporation that you can then modify.
No matter what kind of "pass thru" you do, you're not going to avoid individual income tax. However, you CAN use a number of write-offs to lower the burden. In particular, itemizing mileage driven for business purposes is a major boon. As I understand it, the deduction for "office space" usage is examined carefully by the IRS so I've avoided it. One strategy that I'm working on putting into place right now is a 401K plan whereby you, the employer, can match your (the employee's) own contributions into your retirement accounts. The trick is that the same match has to be available to all full-time employees in the company. (not a problem in your case).
On a 65K job, 16 percent is 10K so the extra paperwork does make sense. BUT, record keeping (ie. receipts and mileage tracking) is CRITICAL come tax time.
No matter what kind of "pass thru" you do, you're not going to avoid individual income tax. However, you CAN use a number of write-offs to lower the burden. In particular, itemizing mileage driven for business purposes is a major boon. As I understand it, the deduction for "office space" usage is examined carefully by the IRS so I've avoided it. One strategy that I'm working on putting into place right now is a 401K plan whereby you, the employer, can match your (the employee's) own contributions into your retirement accounts. The trick is that the same match has to be available to all full-time employees in the company. (not a problem in your case).
On a 65K job, 16 percent is 10K so the extra paperwork does make sense. BUT, record keeping (ie. receipts and mileage tracking) is CRITICAL come tax time.
"I remember reading an article from the NY Times, where women made significantly more money than their husbands - and one wife was like, "I made 7 figures this year and he stayed home, I'm not sucking his dick" - WIA