"Freelancing" and billing a company instead of being on payroll

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > "Freelancing" and billing a company instead of being on payroll

moana: Jun 18, 2005; one of the more intellectual satire communities on the web

I doubt you need an LLC unless you risk getting sued for doing your job.

You'll need to pay your own taxes quarterly, you can do this online easily and there are calculators to estimate what you owe. You will be paying self employment tax, so make sure your billing rate is higher or else the company is just taking you for a ride to avoid employer taxes.

When you file taxes, you'll get a 1099 in the mail and you'll file a schedule C. Keep track of any expenses you have, including health care premiums if your new employer isn't paying for it.

# ¿ May 22, 2019 13:45

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# ¿ May 16, 2024 17:38

moana: Jun 18, 2005; one of the more intellectual satire communities on the web

DaveSauce posted:

I don't know the ins and outs, but if you don't have a legal business entity set up, can you cash checks made out to said business entity? Checks made out to "Bob's Consulting" are not technically the same as checks made out to "Bob Smith." You and the company probably don't care, but the banks might pitch a fit.

Depends on the bank, but it's definitely legal to cash a check intended for you, even if it's the wrong name or your business name. So if your bank allows it, you're okay, but yeah, avoid the hassle and have them write it out to you directly.

# ¿ May 22, 2019 14:06

moana: Jun 18, 2005; one of the more intellectual satire communities on the web

Jack2142 posted:

Get the LLC

Why? It doesn't sound like liability is a factor and he doesn't want to start a business. Most 1099 work is just sole prop. Am I missing something?

# ¿ May 23, 2019 02:07

moana: Jun 18, 2005; one of the more intellectual satire communities on the web

Minidust posted:

Is there any reason I couldn't start with a sole proprietorship and then just look into LLC/S-Corp/etc if it's still going on in six months or so?

No reason unless you fear being sued. If it turns out to be a long thing or makes you a ton of money, come back here and ask again!

# ¿ May 24, 2019 02:46

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > "Freelancing" and billing a company instead of being on payroll