Sec. 1706 of the Tax Code

[Keith Smith]

David, you have brought up Sec. 1706 of the Tax Code several times over 
the years.  I am not familiar, however from what you describe it sounds 
like it prohibits a programmer from becoming a sole proprietor, however 
it sounds like it does not stop agencies from doing contract work.

What is an agency?

I'll read Sec. 1706 of the Tax Code when I get done with my current 
project and have more time.

Sounds like the solution is to form an Limited Liability Company (LLC). 
My accountant says it is legitimate to form an LLC and be a one man band 
and to have only one client.  He say that is a legit business.

Forming an LLC in AZ is simple.  Fill out the forms the state provides 
pay your fee with the filing and publish.  I think it costs about $85 
and takes 3 or 4 hours (for a beginner) over about 6 weeks.

Anyone have any thoughts?

-- 
Keith Smith