I do a ton of freelance web design and decided to setup a simple LLC so I could have a credit card to make business purchases with. From my limited understanding, I can choose to be taxed as an S-corp or a C-corp. I believe that as an S-corp my earnings before taxes will not include what I pay myself out of the company's income.
If I were to do a C-corp, would I need to submit a W2 for myself and pay myself some amount of money each month? Then the money I paid myself would be a business expense, and lower the actual amount of money the LLC would have to pay taxes on, with the caveat that I then pay personal taxes on the money paid to me via W2.
My wages are currently under $100,000, and I am the only employee of my LLC. Income varies drastically month to month. How do you recommend I structure the method that I use to pay myself? C-corp or S-corp? In the past I've filed as an S-corp I believe, and had my business income lumped into my personal tax return.
Also, I am looking to buy a home in the next couple of years. Does this affect anything?