The balance of this eBook is not intended to cover every situation. Once you determine that you are self-employed and will receive a Form 1099 for your services, I suggest you contact a tax and/or legal professional to guide you through your individual situation.
This is the third installment of
Independent Contractor Taxes…Know Your Options.
It can be downloaded from our eBook library.
Whether you’re a consultant, hair stylist, or painter, being self-employed is the same as starting any other business and you need to treat it accordingly. You may or may not have employees or a brick and mortar office location; however you need to treat your business in the same manner as a building contractor with 25 employees would. As I will explain in detail below…
following corporate procedures will benefit you each year as your business continues to grow.
Schedule C (Form 1040), Corporation (Form 1120 S or C), Limited Liability Company or Partnership (Form 1065)
If you make no decision regarding the above and fill out a W-9 with your social security number on it you have decided, by default, to file your income and expenses as a self-employed individual on your personal income tax return (Schedule-C of Form 1040).
Not that this is a problem, however entity selection can have different outcomes when it comes to taxes paid and benefits available to you the owner and any employees. This decision, in my opinion, is driven by a number of factors that should be discussed with tax and/or legal professionals. These factors include if you will have any partners? What taxable income is expected in the first couple of years? What legal liability concerns arise with the type of business you are engaged in?
Learn more about your options are as an independent contractor. Download my FREE eBook: Independent Contractor Taxes…Know Your Options.
Do you have questions about Form 1099 and need the answers now? Are you looking for a Fort Myers or Naples accountant to assist you?
Contact me online, or call me at (239) 384-9688 (Naples) or (239) 768-5008 in (Fort Myers).
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-Mark
This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.
