HI,

I am into software industry working as software consultant in CA.

I am working as an independent contractor. I get my 1099 from my company where I work.

My question is that If I open an LLC, does it help in saving taxes on 1099? How difficult is opening an LLC? What kind of tax savings I can make with an LLC on 1099?

Your quick response is really appreciated.

Regards,
Snee2u

The LLC is a legal entity designed to be a "poor man's corporation", and is NOT a tax entity. Most LLCs continue to be taxed as a sole proprietorship, which means there are no savings.

Your best option for tax savings is using the subchapter-S corporation, but only if your income is somewhat high (in the $250K range).