Carl
Level 15

Business & farm

@markjacobson 

Only you can determine which is best for you. There is not one "catch-all" that is perfect for everybody.  Each type of entity has it's pros and cons. The simplest entity is the sole proprietorship or single member LLC. It's generally a good idea to start simple and work things up on an "as needed" and "as beneficial" basis. I honestly don't know of to many single member LLC's that earn so much money in their first year, that entity type would matter.

I'm not particularly excited about paying 15.3% in self-employment tax.

You're not getting out of that, no matter what.  As a W-2 employee, the employer pays that 15.3% SE tax. So if you have a corporation that you own and you work for that corporation that you own as a W-2 employee, then the corporation that you own pays the 15.3% SE tax. What the IRS doesn't suck out of you today, they most certainly will tomorrow.