I'm a programmer and I've been working at my current freelance gig for a few months now. They pay me hourly and ranges from 20-40 hours a week. The checks I've been receiving have taxes deducted already and its about 40% of my paycheck.
- I have an LLC that is under my name and filed with my 1040 at end of year.
- The current job has my SS# down on file instead of my LLC's EIN number.
- My LLC is basically a computer repair shop + web design shop. So I buy alot of inventory throughout the year for R&D and to do repairs.
My question now is:
Since the gig i'm at now is paying to my SS#, thats the same as paying to my LLC right? since I file under the same document when I do my 1040.
I've freelanced at previous companies before and they usually pay me in full 100% of my paycheck and then I pay the taxes at the end of the year. I asked this place to pay me in full instead of deducting the taxes up front and they wont do it. What advantage does this have for both parties? It seems like I'm paying ALOT in taxes as I'm getting hit at the highest rate.
I'm your basic computer guy that can fix hardware and do software. It's okay to buy a bunch of hardware to do R&D and write it off as expenses right?
They issued me a W9 in the beginning. Thats just used for collecting my SS# right? Was I supposed to put my LLC's EIN number there? And this W9 just becomes a 1099 at the end of year?
How can I not get my taxes deducted up front?