Ive been an independent contractor for 5+ years. In no way am I giving legal advice. Here is what I did. There are different reasons to form different types and it also depends on your state. Rather it is sole, partnership (if you got a partner), LLC, or Corp. Look into all of them.
Going as an independent contractor gives you A LOT of new freedom you will not be used to. This also comes with expenses, and of course office politics. As you go into it building your relationships will be extremely important.
Personally I went with an LLC. This allows me to operate without too much red tape and gives me limited protection should a problem arise. The other thing is I hate using my social security number. I hate throwing it around to everyone. So when I contract I use an EIN. Now nobody has my social and my business can start earning business credit. Not that I have really cared about business credit.
You can get a EIN as a sole. But again you really need to examin them all for yourself. If you want to run a business which in a way you are. Offering services and getting paid, you might as well go the whole 9 yards.
Another thing. I don't belive in putting all your eggs in one basket. It is not a bad thing as a contractor to work with multiple companies. This helps out a lot. Especially companies that try to control you which they really can't as an independent. Then it comes down to your schedule and not theirs. They will ask you if and when you can do the job.
Re: 1099 first timer, need advise
Member #: 43987
Registered: 1/29/2006
Posted:
274
Name:
Mike
Name:
Michael McCrady
Company:
Teleco Pro LLC
Occupation:
Owner
Location:
Missouri
Personal:
40-ish
Experience:
~21 years
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