USA 1099 vs w2

[krinokin]

if i am incorporated and i am the only employee is it better to be paid by 1099 or w2

 

[kirby]

Better to be paid by w2

 

[MasterMJ]

It really depends on how your company is set up. However, as a sole owner you cannot pay yourself via a 1099. Any payments out to you that are not paying FICA taxes would be considered "distributions" and cannot be deducted from the companies Net Income. However, if you make a W2 payment to yourself, that can be deducted. You have to be sure to understand the difference and how it interacts with how your company is set up.

All-in-All, you cannot pay yourself as a 1099 contractor if you are the owner of the company.

 

[Devin]

Sorry that interrupt. One specializing questions as I live in Moscow and don't know some things.
I understand that you discus about IRS tax forms.
Which forms we use to pay a tax for federal budget.
And which forms we use to pay a tax to the budget of state.
And does forms depend on company and state?