for tax purposes. Should I remain an independent contractor or turn it into a sole propietorship(privately owned business)? Which is better, what are the pros/cons? Thanks.
2006-11-11 15:29:28 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
As an independent contractor you are a sole proprietor. Either way you file schedule C with your tax return each year. If you are worried about liability issues you could form a single member LLC. You would still file the same schedule C with your tax return. The llc could cost more in fees in your state.
2006-11-11 22:17:36 · answer #1 · answered by waggy_33 6 · 3⤊ 0⤋
As an independent contractor/sole proprietor (same thing) the 1099 form is to report your earnings or what they have paid you. If you do work for other agents in your office they should do the same. Remember you are responsible for all your own taxes and insurance. It is running your own business, just like an agent only your don't have to be licensed.
2016-05-22 06:25:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
None. An independent contract is a sole proprietor. The only difference is what you can call your company. As a contractor you have to use your name or your initials. As a sole proprietor you can have a DBA.
2006-11-11 15:38:27 · answer #3 · answered by Dawn J 4 · 3⤊ 0⤋
A sole prorietor OWNS there own bussiness. An independent contractor IS their own bussiness. For tax purposes, they are the same thing.
2006-11-12 06:45:31 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
For general tax purposes, an indepent contractor would be better. If you start a "sole proprietorship", you'll pay more in state taxes.
2006-11-11 15:37:39 · answer #5 · answered by Bill P 5 · 0⤊ 2⤋