I currently work for a prop firm as a w2 employee, but might try to let my employer switch me to 1099 if it makes financial sense. I expect to make over the threshold of $159,000 in 2018. From my understanding you can set up a s-corp in the service industry below $159,000 or in other industries above it. Is prop trading considered the service industry? I wonder if there's going to be any way of getting out of paying these high rates of 32-37%. Thanks.
You'll have to look into that when the law takes effect. It was intimated that it would NOT be available to "one person professional" types. Would be available to businesses which employ others... the owners would get the benefit. Seems to make sense as an incentive for job creation.
I understand pass through companies get the 20% too (which is why Trump gains to benefit so much) so I don't see why not. What I'm trying to figure out is the AMT scrapping for c corps