Posted: 11/7/2009 12:49:56 PM EDT
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I am about to run into a situation where my current primary job is about to become a side job for fun money. I will become a 1099 contractor at that time. My thought was that I could stand up a company to be paid my salary and then that company could purchase the equipment needed to support the company and pay me a salary of what remains. Would this make sense to do? What kind of company would make the most sense?
Thanks |
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Go have a chat with your tax professional. The choice of business entity is important, and choosing poorly will either cost you grief, money, or both.
The best for you depends on your particular circumstances. You'll have to hash that out with your tax guy or gal. |
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Quoted:
Go have a chat with your tax professional. The choice of business entity is important, and choosing poorly will either cost you grief, money, or both. The best for you depends on your particular circumstances. You'll have to hash that out with your tax guy or gal. I was afraid of that. My tax guy is TurboTax. 
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| I went the LLC route and no issues so far. Nothing more than a Schedule C at tax time. I'm the only officer/empolyee in the company. My first year in business, I made enough money selling gun parts from my garage to pay for all my personal guns, gas and lunch. Never had to touch my primary paycheck. Keep all your receipts for anything you declare as a business expense though. |
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Quoted:
Quoted:
Go have a chat with your tax professional. The choice of business entity is important, and choosing poorly will either cost you grief, money, or both. The best for you depends on your particular circumstances. You'll have to hash that out with your tax guy or gal. I was afraid of that. My tax guy is TurboTax. TurboTax will put numbers in the right spot but it won't give you advice. A few hundred spent now could possibly save you thousands in the future, but it's up to you. You could always take the free advice offered on arfcom.
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You also need to go to your county courthouse and file an "Assumed Name Certificate"
this is a legal paper that you are going to be doing business as"XYZ Company" then you can open a business checking account with your company name on it and get a taxpayer ID from the state it is one of the first steps.. you also need to kind of know before you fill out that form what type of bus you are starting.. like mine was a sole proprietorship |