Frequently Asked Questions -

EMPLOYEE VS CORPORATION

When considering whether or not to be an employee or a corporation you first must consider the following:

a) Whether or not you are an employee is again another very complicated consideration. It holds its determination again in the acts and circumstances of the situation. There are many considerations such as direction and control of the employer over the taxpayer, or not. The reason why Captains and some crew are able to be a subcontractor is for thef act that the owner really does not have direction and control over you. The old adage of the fact that the captain goes down with the ship really does hold water here. For this fact alone combined with industry custom means that the Captain can be a subcontractor. Since every subcontractor can choose to be a corporation the determination really is between being an employee or an "S" corporation.

b) In determining whether or not to be an employee or a "S" Corporation you must first determine if you qualify for the foreign income exclusion. Employees and not corporations qualify for the foreign income exclusion. We use "S " corporations mostly for when the taxpayer is a United States Citizen and not qualifying for the foreign income exclusion.

Yacht Links

www.yachtworld.com/SuperYacht/ The Super Yacht Society
www.jf-recruiting.com JF Recruiting is a cost effective system for obtaining yacht crew and contract workers

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