Is there anybody out there who can tell me the differences between 1099 and Incorporated, if any? I have my EAD and my I485 application is pending for close to 10 months now. Is it possible for me to work on an hourly basis for a company other than my employer ? I have this contract to hire offer but the middle man is not ready to sub contract with my employer ? So can I do an hourly with the middle man ? Would I need to start my own company for that ? Please advise.
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1099 or Incorporated
- Thread starter YOGICRAB
- Start date
Yes U can start yr co to do that
1099 is the wage statement that you receive from your "client" when you serve them thru a company incorporated by you. This is same as the wage statement for the hourly rate business.
U can do a contract as long as the client (or somebody) gives you an employment offer after GC approval or you can prove that there is employment potential after GC approval even thru your own company.
Consult your lawyer, since the lawyer has to agree and go along with this idea and he/she is the only one who will stand by you at the time of interview (if you are called for one)
1099 is the wage statement that you receive from your "client" when you serve them thru a company incorporated by you. This is same as the wage statement for the hourly rate business.
U can do a contract as long as the client (or somebody) gives you an employment offer after GC approval or you can prove that there is employment potential after GC approval even thru your own company.
Consult your lawyer, since the lawyer has to agree and go along with this idea and he/she is the only one who will stand by you at the time of interview (if you are called for one)
1099 vs Inc.
You don't have to incorporate to get a 1099. You can get paid individually via a 1099. Most companies do not like to do this though since it can open them up to liabilities (Eg. if you don't pay taxes, don't have liability insurance etc.).
In fact in computer consulting 1099 normally means being paid as an individual. The three types of contracting are normally:
W2. You are an employee of an agency and the company pays the agency who in turn pays you. This is also a good way to get a GC if the agency is willing to sponsor you since you are an employee of the agency working on a variety of contracts (less likely you will be laid off).
Incorporated. You incorporate a company and are eventually paid as an employee of the company.
1099. You contract directly for a company w/o going through an third-party company.
You should speak to a CPA about the pros/cons of each of these ways of contracting.
You don't have to incorporate to get a 1099. You can get paid individually via a 1099. Most companies do not like to do this though since it can open them up to liabilities (Eg. if you don't pay taxes, don't have liability insurance etc.).
In fact in computer consulting 1099 normally means being paid as an individual. The three types of contracting are normally:
W2. You are an employee of an agency and the company pays the agency who in turn pays you. This is also a good way to get a GC if the agency is willing to sponsor you since you are an employee of the agency working on a variety of contracts (less likely you will be laid off).
Incorporated. You incorporate a company and are eventually paid as an employee of the company.
1099. You contract directly for a company w/o going through an third-party company.
You should speak to a CPA about the pros/cons of each of these ways of contracting.