Proposal
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A former boss recently called me and asked if I would be interested in doing some work for his current company as a consultant.
I'm tentatively interested in engaging for the work.
What do I need to do if I take this on? Not sure I'd be doing anything on a continuing basis. Should I be looking at setting up a business entity even for a one off job? Do I need to seek out insurance?
I'm sure there are a large variety of considerations that I'm not thinking of as well.
Tell me why I should or should not consider doing this!
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So from a tax perspective, this is a business looking to hire a freelance employee, since it doesn't sound like you have a business you operate.
You could suggest that to your ex-boss, and have your freelance rate be something realistic for a consultant, and pay taxes on it like that.
I'd be wary of doing anything otherwise, setting up a business costs money, and without more details I don't know if it's something you'd actually want to do.
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I realize I haven't provided a lot of detail. I don't necessarily have a lot so far. Just a few minute conversation re: are you interested/should we discuss further. I did say yes to a further discussion of what they need but haven't yet had the next conversation.
Just trying to make sure I'm not bungling things too horribly at an early stage.
For some reason I was not thinking of the option to work as a freelance employee, that seems like it is probably a good approach for this situation.
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First question is always... over or under $600/year?
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@scottalanmiller said in Proposal:
First question is always... over or under $600/year?
Why over or under $600/year?
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@black3dynamite said in Proposal:
@scottalanmiller said in Proposal:
First question is always... over or under $600/year?
Why over or under $600/year?
It a valuation to see if it's worth setting up a business, getting insured etc.
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Personal liability vs Business liability, essentially.
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@black3dynamite said in Proposal:
@scottalanmiller said in Proposal:
First question is always... over or under $600/year?
Why over or under $600/year?
That's when the US assesses taxes on third party labour.
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@DustinB3403 said in Proposal:
@black3dynamite said in Proposal:
@scottalanmiller said in Proposal:
First question is always... over or under $600/year?
Why over or under $600/year?
It a valuation to see if it's worth setting up a business, getting insured etc.
Most likely just the cost of getting a LLC started on average. Insurance is not a big concern.
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@JaredBusch said in Proposal:
@DustinB3403 said in Proposal:
@black3dynamite said in Proposal:
@scottalanmiller said in Proposal:
First question is always... over or under $600/year?
Why over or under $600/year?
It a valuation to see if it's worth setting up a business, getting insured etc.
Most likely just the cost of getting a LLC started on average. Insurance is not a big concern.
That as well. In most states, minimal LLC cost is in the ~$600 vicinity. Plus some annual costs. In Texas it is $650. Some states are low like $300. But if you are earning around $600 one time, you don't want it all to go to incorporation.
Insurance definitely not viable in this range (if any.)
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@scottalanmiller said in Proposal:
@black3dynamite said in Proposal:
@scottalanmiller said in Proposal:
First question is always... over or under $600/year?
Why over or under $600/year?
That's when the US assesses taxes on third party labour.
Pretty sure this isn't true. My tax guy told me you are required to declare all taxes, but as a 1099 employee (freelance contractor) the company isn't required to give you a 1099 (i.e. tell the government about them paying you) until they pay you $600 or more.
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@Dashrender said in Proposal:
@scottalanmiller said in Proposal:
@black3dynamite said in Proposal:
@scottalanmiller said in Proposal:
First question is always... over or under $600/year?
Why over or under $600/year?
That's when the US assesses taxes on third party labour.
Pretty sure this isn't true. My tax guy told me you are required to declare all taxes, but as a 1099 employee (freelance contractor) the company isn't required to give you a 1099 (i.e. tell the government about them paying you) until they pay you $600 or more.
You are correct, you are supposed to manually report that. It just isn't reported on paperwork automatically.
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@scottalanmiller said in Proposal:
@Dashrender said in Proposal:
@scottalanmiller said in Proposal:
@black3dynamite said in Proposal:
@scottalanmiller said in Proposal:
First question is always... over or under $600/year?
Why over or under $600/year?
That's when the US assesses taxes on third party labour.
Pretty sure this isn't true. My tax guy told me you are required to declare all taxes, but as a 1099 employee (freelance contractor) the company isn't required to give you a 1099 (i.e. tell the government about them paying you) until they pay you $600 or more.
You are correct, you are supposed to manually report that. It just isn't reported on paperwork automatically.
And you have rule followers like me that report all of my LLC's income even if it didn't receive its 1099 form.
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Filing to create an LLC in CO appears to be $50. Based on some previous statements I was expecting it to be more. Are there typically extra steps that will bump up the cost or are we just cheap?
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Filing to create an LLC in CO appears to be $50. Based on some previous statements I was expecting it to be more. Are there typically extra steps that will bump up the cost or are we just cheap?
Georgia is cheap. I'm pretty sure my annual registration is around $50. The initial registration was $100 maybe.
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@EddieJennings said in Proposal:
Filing to create an LLC in CO appears to be $50. Based on some previous statements I was expecting it to be more. Are there typically extra steps that will bump up the cost or are we just cheap?
Georgia is cheap. I'm pretty sure my annual registration is around $50. The initial registration was $100 maybe.
You have to register annually?
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@DustinB3403 said in Proposal:
@EddieJennings said in Proposal:
Filing to create an LLC in CO appears to be $50. Based on some previous statements I was expecting it to be more. Are there typically extra steps that will bump up the cost or are we just cheap?
Georgia is cheap. I'm pretty sure my annual registration is around $50. The initial registration was $100 maybe.
You have to register annually?
Yeah. And I confirmed, the annual registration is $50. I do recall the initial registration (business formation) being a little more.
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Yeah. Original filing fee is $100 for Georgia.
https://georgia.gov/popular-topic/corporations-llcs-and-limited-partnerships
