Going from W2 Employee to ??? - DBA, LLC, ETC?

foneguy9foneguy9 subscriber Posts: 2
edited November 2007 in Business Planning
I am currently a W2 employee with 13 years at this company with a
salary of 48,000. I get paid, on average, 800.00 a month commission.
Also, I drive a company car and have health insurance for myself only.
I need to have much more time for my family as my in-laws are moving
in for health reasons for about 9 to 24 months, depending on their
condition.
My wife works as a housekeeper with 1099, part time, @15,000 a year.
I have been moonlighting with some consulting and hardware sales
(making about 9,000)and would like to know if I can set myself up as an
LLC - S Corp and not have an IRS flag, if I complete an annual contract
with my current employer for 1300 hours services for the year with
additional hours being billed at $95.00 an hour. Travel time will be
billed as well and I would need to travel locally (drive) and
occasionally, out of state (California).
I would be given work projects that I can take care of in any manner that I see fit as long as the Client pays up.
Would it be worth it to form the LLC?
(Also, I am looking at selling my current home and would be in
350,000 in the Black so I am not too worried about income for several
months but I am trying to see what may be a good fit for me.)
I want:
Flexible time schedule and the ability to spend a couple of weeks to a
month attending my family primarily, during the year, and work takes a back seat.
Ability to sell my home myself.  I have done this before with family`s homes so I know enough to do it myself.

Combine my health insurance and wife`s.  Currently paying for my wife`s Health insurance at $165.00 a month.One clarification above, is that my current salary of $48,000(Gross) is including bonus and commission`s as well.
What I was looking at was a (1) year contract that I would provide to
my employer with 1100 hours included in the contract at a reduced rate
because of the contract for $49,000 with a $5,000 retainer. In the
contract it would specify the $95.00 an hour rate with the reduction
rate shown because of the contract.Anything above the 1100 hours would be billed at the $95.00 hourly rate, invoiced and billed at the end of the month.I think this will allow me to seek other opportunities as well as provide for my `bread and butter`, basically.Is this feasible? Since I have been a W2 for so long, (I had worked
for myself in my field as an independent contractor, about 10 years
ago, as a sole proprietor for about a year with limited success) I am
trying to understand the benefits of an LLC and what is legally
possible and what isn`t.

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