LifeinAsia - 3:49 pm on Apr 29, 2009 (gmt 0)

set up an "S corp" that way you can avoid paying self employment taxes for the first year.

That blanket statement is an extremely over-simplified piece of advice and is a minefield of problems and potentially misleading information. That advice MAY work for some people, taking into account their specific situations. Also note that you still need to pay yourself a "reasonable salary," which *is* subject to payroll taxes. Further explanation is way beyond the scope of this thread and would be better treated as a individual topic of conversation with your tax preparer.