Q&A: Small Business vs W-2?

by eyewashdesign: A. Golden
Question by Maney: Small Business vs W-2?
I am working as a consultant for client and the prime vendor (NJ) generates pay roll as W-2 emplyee by deducting 10% of corp 2 corp billing. He also provides per diem allowance (tax exemped).

Just thinking of starting my own corp, wondering any benefits compare to W-2.

For example, I get 100K per year:
W-2 case:
10% towards emplyee taxes, so net would be 90K
Then 10K towards per diem
Taxable/pay roll amount would be

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