Right up front your are responsible for a 15.3 percent se tax and federal income tax and state income tax. rought ROT about 40-50% taxes and you keep 50-60%
Your potential liabilities that you need insurance?
if you have employees, a whole host of regulations.
If you didn’t realize it, you paid those exact same taxes as a W2 employee... you just never saw the money yourself. the employer deducts it directly from your wages.
as 1099, you’re left with the obligation to pay those same taxes yourself but you pay the taxes after expenses. which allows you to pour as much as you can in tax protected investment accounts, lowering your taxable income.
you can also reduce your tax obligation significantly by doing the work in a tax free state (ie: FL, TX, etc).
don’t forget to write off any startup expanses you may have.
also, if you can take a lower salary and take profits after the first year, those profits could be declared as cap gains by the investor (if you structured as an LLC) radically reducing your tax obligation.