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JenMarie
One day at a time
Member since 11/07 7397 total posts
Name:
Jennifer
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Do you need to be incorporated to be a consultant?
My old boss has some projects he wants me to take on. I know the issue with taxes and needing to put aside around 40%. But is it better if I incorporate myself? We're talking substancial dollars and I just don't want to have any problems down the road. TIA!
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Posted 4/11/08 3:26 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Do you need to be incorporated to be a consultant?
Not necessary at all. Your SS# should be suffice for the 1099.
I would however, make sure that you put whatever deal you're working out in writing and have the company agree and endorse it. That way, you're protected.
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| Posted 4/11/08 3:32 PM |
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JenMarie
One day at a time
Member since 11/07 7397 total posts
Name:
Jennifer
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Re: Do you need to be incorporated to be a consultant?
Posted by bicosi
Not necessary at all. Your SS# should be suffice for the 1099.
I would however, make sure that you put whatever deal you're working out in writing and have the company agree and endorse it. That way, you're protected.
Thanks. I have a sample contract, but most of it isn't applicable. Do you think an email outlining the project, expectations on both ends and pay would be sufficient?
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| Posted 4/11/08 3:38 PM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Do you need to be incorporated to be a consultant?
Posted by Jennifer907
Posted by bicosi
Not necessary at all. Your SS# should be suffice for the 1099.
I would however, make sure that you put whatever deal you're working out in writing and have the company agree and endorse it. That way, you're protected.
Thanks. I have a sample contract, but most of it isn't applicable. Do you think an email outlining the project, expectations on both ends and pay would be sufficient?
Absolutely! 
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| Posted 4/11/08 3:39 PM |
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karacg
Babygirl is 4!
Member since 5/05 17076 total posts
Name:
Kara®
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Re: Do you need to be incorporated to be a consultant?
I'd still get an original signature on the email copy....
You can be an Independant Consultant - and your expenses are tax-deferred. Keep a list and receipts for any expenses incurred (ink, gas, paper, whatever! It adds up!). Be sure to put $$ aside for your taxes - you can do quarterly estimated taxes if you want.
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| Posted 4/11/08 4:03 PM |
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JenMarie
One day at a time
Member since 11/07 7397 total posts
Name:
Jennifer
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Re: Do you need to be incorporated to be a consultant?
Thank you both!
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| Posted 4/11/08 4:07 PM |
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Katie111806
Team Pink!
Member since 12/06 5349 total posts
Name:
Katie
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Re: Do you need to be incorporated to be a consultant?
No you don't need to be. I have a contract signed by myself and the CFO and controller of the company I do work for that outlines the roles/responsibilities, etc of each party. I also pay estimated taxes on a quarterly basis. Definitely keep track of your expenses - I almost fainted when I got my tax return this year!
Good luck!
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| Posted 4/11/08 5:44 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Do you need to be incorporated to be a consultant?
From a liability standpoint (and often from a tax standpoint), you are better off operating as an LLC or an s-corp.
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| Posted 4/11/08 5:57 PM |
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