<prompt> Human: An old employer wanted to hire me back via 1099 for engineering services for a 18 month long project. After researching Ive setup a sole-member LLC with an S-corp election to receive the 1099 income from the client. Then I will pay myself a reasonable wage 80k from my LLC as the employer to myself as the employee. The idea is to only owe payroll taxes 15.3 on the reasonable wage. The rest of the income 140k? the LLC takes in is passed onto me through profit sharing via K-1 and is only taxed as normal personal income not payroll.Ive created an individual 401k and individual roth 401k to take try to maximize tax preferred savings. From my understanding, the employer contribution has to go to the traditional 401k and my employee contributions can go into the roth 401k for the max of 18.5k. The max profit sharing the employer can contribute is 25 of the reasonable wage not K-1 or business income?. This would limit the total value to 38.5k and be below the overall 55k limit. I would manually move both of these contributions from the business bank account to the 401k provider each payroll.I pay estimated quarterly income taxes based on paying 100 of my income tax from last year to be safe. Also, federal and state unemployment taxes would be paid the first quarter they are due and then they are maxed out and not paid anymore since they are only on the first 7k or so. Provide myself a W-2 at the end of the year and file business and personal income tax. Franchise tax does not apply ? since I would be below the 300k business profits limit for Texas.Is that a reasonable plan or what other aspects am I missing or problems am I creating? I randomly stumbled upon franchise tax for example but what else is out there for taxes savings Im missing out on? Thanks for the help!  <response>: OP lists very impressive treatise covering essentially all aspects of the situation. what other aspects am I missing Nothing that I can think of. If you understand the part about paying unemployment taxes for yourself from an LLC taxed as a corporation, you are pretty far ahead of the game. 