One of the biggest hassles of someone who is self-employed is taxes. If you work for someone else you pay less taxes, sometimes even getting taxes back at the end of the year. However, if you are self employed, you have to pay a percentage of what you make every year. I have to pay 32% of whatever I make at the end of the year. Thats $32,000 if I make $100,000. That sucks!!!
There are some ways to drop that percentage a little, but the ways are different for everyone. I suggest talking to your own accountant and lawyer about this, the IRS wont accept “but some guy on the internet told me…”.
I recently made a company called “Developer Hut, Inc.”. It is a type-s corporation. This saves me from paying self-employment taxes. Say I make $300,000 this year, The type-s will save me $20,000, or about 7%.
There are other types of companies to form also, such as LLC, PLLC, Sole Proprietorship, etc. I did an incorporation for the tax benefits.
The process has cost me $830 so far. I first talked to a lawyer who suggested to me to form an Inc, I then talked to a lawyer and he did everything else. The company formed on 4/24/06. We had our first “annual meeting” on 5/05/06.
Another advantage of forming a company is liability. By forming a company you are separating your personal life from your business life, which also separate your personal assets from your business assets. So if someone sues my company, they can only get what my company owns. They don’t get anything personal of mine.
So forming a company can be great for tax and liability reasons. If you have any questions feel free to post a comment 
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nice blog ;), hopefully i’ll be making my own soon =d
Bobby (from msn)