1099

[Telangana]

To work on 1099, do we have to start a corporation or is there any other way? If we need to start, what kind of companies we can start just to get paid on 1099?

I appreciate your responses.

 

[rm_72756]

JoeF, one question to your answer

The same question I had and I was about to ask. Thanks both of you.

As you said, we dont need to create a company of corporation or any etitiy to work as independent consultant with a company ? All we need to do is when we file the tax, file Schedule C right ?
But how about tax . you said we need to pay it every quarter. is there any seperate form to fill every quarter ? can you please explain.

thanks in advance !!
Raj

 

[rm_72756]

Thanks JoeF..one more Q

another Idea on top of my head :

If I wanted to start a business (consulting), and recruite 2-3 people on 1099 basis as well, what kind of Company should I start ? I saw in other website S corp, LLC and Inc etc. Which is best ? Do I need to have a separate office for that ? If I rent a Home (not apartment) will that be okay ?

thanks !!

 

[Telangana]

You can just declare that as "self-employment" in your tax return. No need to create a corporation.
But, it is a company. Just with yourself as the only employee. The tax form for that is the Schedule C. Note that depending on the amount of money you get, you should pay taxes every quarter, to avoid penalties on April 15. And you of course can deduct business expenses for things you use in the business.
Because of all this, if you don't know these things, you should go to a CPA to get everything right.

Thanks JoeF. I have one more question, but I'll post in a seperate thread.

 

[CoolDesiDude]

If you are a PR go for a s-corp - this way you save some money in FICA taxes .

 

[mailramesh]

what is your visa status?

Telengana,
Are you on visa or do you have a green card? is it possible to be self employed and make extra income while you already have a job in H1b?
Joef you comments too?

 

[duck008]

H1-B and 1099

Telengana,
Are you on visa or do you have a green card? is it possible to be self employed and make extra income while you already have a job in H1b?
Joef you comments too?

This is exactly the question I wanted to ask. I'm having a H1-B visa. Do I need to get a separate H1-B visa to employ myself to earn on 1099? And if I don't want to get a separate H1-B what is the best alternative?

Thanks.

 

[Telangana]

Telengana,
Are you on visa or do you have a green card? is it possible to be self employed and make extra income while you already have a job in H1b?
Joef you comments too?

I have GC. For your other questions, Joef already answered.