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To: SoCal Pubbie

>> “I get 1099 forms every year. I have a home office with a separate phone number, a business checking account, a state issued resale card, and liability insurance in the name of my DBA entity. I work for multiple clients.”

Problem is most clients will not be allowed to send you a 1099 if you don’t meet the contractor test.


28 posted on 05/09/2021 7:00:59 AM PDT by 386wt
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To: 386wt

I’m not worried in the least. Most of my clients are not in the same business. I’m no different than the single worker plumber going to someone’s house to unclog the kitchen sink. Occasionally I do work for other design companies but haven’t done so for years.

The problem is that single plumber who needs an extra worker to handle a big job and it is prohibitive to make that extra set of hands an employee. He’ll probably wind up paying people under the table.


29 posted on 05/09/2021 7:10:19 AM PDT by SoCal Pubbie
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To: 386wt

Problem is most clients will not be allowed to send you a 1099 if you don’t meet the contractor test.”

If you form a one-person corporation instead of being a sole proprietorship you do not need a 1099.

It is cheap to form the corporation but there are more hoops to jump through as far as filing a separate tax return for the business.


45 posted on 05/09/2021 9:01:36 AM PDT by angry elephant (Been with Trump since huge 2016 Washington state rally in May.)
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