FreelanceCampSessions3
Taxes for Freelancers
Is it better to go as a 1099 or Employee of record?
1099 is a subcontractor they are responsible for their income.
You have to file a 1099 to hire any entirety that doesn't have inc in their name.
Employee of record the employer is responsible.
As an individual do I want to worry about a 1099.
Can't pay a employee as a 1099 when they are technically an employee. http://en.wikipedia.org/wiki/IRS_tax_forms#1099_series
If you are a 1099 you can then account for business purposes and them write them off.
IRS is concerned with who is getting the money.
Contract employees handbook: http://www.cehandbook.com/
Set aside 33% to pay your taxes at the end of the year.
PACE: http://www.pacepros.com/
Offers many services. Some companies will not deal with 1099 contractors.
Issues with interns:
everify
Being paid less than minimum
Very important to cover your butt.
Check out SBC
Setting up a LLC:
Important for limiting your liability.
Starting is confusing.
Nolo.com
$800 minimum a year
http://www.legalzoom.com/
Very useful to have a lawyer friend.
LLC give flexibility in taxation
S and C Corp: Possibly to go public later
Reporting, complicated, should talk to a lawyer.
Can start as a LLC and change to S Corp.
Errors and Ommisions: http://en.wikipedia.org/wiki/Errors_and_omissions_insurance
Self Employed:
irs 1040 instructions
Estimated taxes guide
Supposed to be quarterly.
State taxes are goofy now.
Best bet is to find a tax professional, Its going to get worse!
H&R, Lopez Tax, Shop around, Paul Fried?
Be careful when paying 1099 can get burned.
How not to get burned with accountants:
Go to the state board of accountancy, list of questions
Ask for referrals --> Best option
Check licenses
Ask for recommendations in your field.
Check NextSpace or other coworking spaces and ask around.
Charge for both time and product. These are separate and have to be accounted as such.
QuickBooks, offers good services.
http://freelanceswitch.com/the-business-of-freelancing/online-bookkeeping-for-freelancers-that-wont-cost-an-arm-and-a-leg/
Evernote is also a great tool.
