How much money do I need to quit my W2 job?

The standard FIRE rule is 25x your annual expenses. If you spend $50,000/year, you need $1.25M invested. But many people quit earlier by building side income that covers their base expenses — you don't need full FIRE to leave.

What's the safest way to transition out of W2 employment?

Build a side income stream that covers at least 50-75% of your monthly expenses before quitting. Keep 6 months of emergency savings, secure your own health insurance, and have at least one proven revenue channel outside your job.

Is it better to go 1099 or start an LLC?

An LLC taxed as an S-Corp typically saves 15.3% in self-employment taxes once you earn over ~$40K in net profit. Start as a sole proprietor/1099, then form an LLC when revenue justifies the filing costs.

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