2007-03-26 08:49:12 · 3 answers · asked by Donna J 1 in Business & Finance ➔ Small Business
Well, you can definitely say no, but how do you expect the client to hire you? W-2? I sincerely doubt it...
2007-03-26 09:38:04 · answer #1 · answered by NC 7 · 1⤊ 0⤋
You are better off operating the business in a manner in which the issuance of a 1099 is not necessary. If one is issued, then your reporting of the income is in no way changed from if one is not. Either way, all income needs to be appropriately reported.
If you are "doing business" and getting paid in you own, personal name, than you are always going to get a 1099 if you receive a certain amount (used to be $ 600/year) then you are supposed to receive the 1099.
If you want to avoid this, then operate as a bona fide business. Have a specific business name. Open a seperate business checking account. Keep all your business records/accounts completely seperate. As you get paid, set aside (in a money market--again, seperate business account) about 25-30% of the proceeds for taxes.
You may still be asked by the paying business and/or individual for a tax payer identification number so you should get a seperate (even if you have no employees save yourself) EIN (employer identification number) which will have the same number of digits as a SSN (social security number) but with only one hyphen (after the first two digits).
In the end, it doesn't matter. Income is income. Keep great records and deduct all legitimate expenses to reduce taxable income. Whether or not you get a 1099 is really not a big deal.
2007-03-26 09:39:01 · answer #2 · answered by Rnr39 2 · 0⤊ 0⤋
You can say no to a 1099 but, you must provide the client with a means to report what they have paid you to the Government.
Everybody MUST pay taxes.
2007-03-26 08:57:06 · answer #3 · answered by thomy8s 4 · 0⤊ 0⤋