Good conversation. I was an LLC and paid the IRS as an S-Corp. Because the filings where too much for me I used a payroll company. Not sure I really saved much because it cost so much for the payroll company and for the CPA. After reading what David and Steve had to say I think I may never do any 1099 work again... in the form of freelance programming. I think Steve has the right idea. Both of you gave great feedback. On 2022-08-19 18:10, David Schwartz via PLUG-discuss wrote: > A. I have nothing for sale to folks here, as I’m semi-retired now. > This is all water under the bridge to me. > > B. I went down the route of working as a sole proprietor for over 10 > years. I nearly lost my house twice and got hosed-up in a lawsuit > where I “won the battle but lost the war” mainly because of > personal exposure I took on from a client (a Corp) whereas I was a > sole proprietor rather than a Corp or LLC. My lawyer was new and > didn’t recognize that this guy had used a very classic approach to > judgement-proof himself and his business, and after “we” won what > amounted to a worthless judgement, my lawyer resigned and sued me for > his fees. Never mind that my “client” had actually been awarded > 100% of my judgment against him from a malpractice claim, it was > totally uncollectible, and my lawyer never saw it coming. > > C. This all cost me a LOT of money, time, stress, and aggravation, > (all of those things you mentioned, and more) and ended up forcing me > to cash out my retirement funds to keep from losing pretty much > everything. > > D. I was audited by the IRS several times, although in the end I > didn’t owe them anything. It’s just that as a sole proprietor > there are lots of perfectly legitimate tax write-offs you can claim > that raise enough flags with them that you attract audits. Audits are > quite nerve-racking, take a lot of time, and can end up costing your a > LOT of money. > > E. in 2009 I got a big contract in another state, and met with a tax > advisor who basically laid out most of what I stated; he convinced me > to set up a C-Corp and use a 3rd-party to process my payroll. It ended > up being the easiest, simplest gig I ever had; my personal taxes were > simple to file; my corp taxes were very straightforward; very little > of the stuff you mentioned applied; and my CPA said it saved me money > over not having the Corp. I had it for a few years and it really > simplified a ton of stuff. > > Take what you want and leave the rest. It’s all free. > > -David Schwartz > >> On Aug 19, 2022, at 5:40 PM, Steve Litt via PLUG-discuss >> wrote: >> >> On Sat, 2022-08-20 at 00:07 +0000, David Schwartz via PLUG-discuss >> wrote: >> >>> All of that noise >> >> Not noise. >> >>> really only applies to someone who’s a glutton for punishment. >> >> https://en.wikipedia.org/wiki/Ad_hominem [1] >> >>> If you value your time, energy, and sanity, here’s what you want >>> to do. >> >> A little more advice for those choosing to be tech contractors. >> >> You need to sell your services, so be nice. Don't call other >> peoples' statements >> "noise". Don't imply that they're "a glutton for punishment". And no >> matter how >> smart and successful you consider yourself, don't gloat over how >> valuable your time, >> energy and sanity are. >> >> I stand by what I wrote in my previous post. >> >> SteveT >> --------------------------------------------------- >> PLUG-discuss mailing list - PLUG-discuss@lists.phxlinux.org >> To subscribe, unsubscribe, or to change your mail settings: >> https://lists.phxlinux.org/mailman/listinfo/plug-discuss > > > > Links: > ------ > [1] > https://u2206659.ct.sendgrid.net/ls/click?upn=SJEG7TF39YLaAIMD0HhsfJkjrxUKkKXCH0UcDCU0jN2SaWJXsnatdggtYeM7CerI81QtL3mOwSy5zWJnIHoBPA-3D-3DLaS4_o-2BjQxMsWfboH-2B-2BcY2qb3IYCoqvthnvff9ftZz0pNEJ2tF1jbVlVBtrlaPYq4av3GGkt2eseCzkoQM0e2-2FxhsxjlIL3n-2FcbRLJt-2BYPG310KzZFV9HH8OIbe58dEvp27Y5YF76VJAY8-2B1xsqlLPNrY-2FdgsoRBYeX8bIjEB5Qxs82ZhFlGyAmjtYRggN5uAeMsxCwOSXtvVEMsISoeJ7LtuADagHIBsaurJBlVbF7K4tgA-3D > --------------------------------------------------- > PLUG-discuss mailing list - PLUG-discuss@lists.phxlinux.org > To subscribe, unsubscribe, or to change your mail settings: > https://lists.phxlinux.org/mailman/listinfo/plug-discuss --------------------------------------------------- PLUG-discuss mailing list - PLUG-discuss@lists.phxlinux.org To subscribe, unsubscribe, or to change your mail settings: https://lists.phxlinux.org/mailman/listinfo/plug-discuss