Have accounting/legal questions involving 1099 forms, are there any CPS's out there?
Have accounting/legal questions involving 1099 forms, are there any CPS's out there?
I am considering taking a job as a subcontractor for a logistics firm. Basically they are an express courier service similar to Fed ex or UPS, except they subcontract all their delivery personnel.
My question(s) lie within the mysteries of 1099 forms and being self employed.
Q1. To do a job like this properly and get all the tax benefits should you set up your own business in like an LLC, or INC, or what? Ballpark figures, since this should be a fairly inexpensive procedure, how much would something like that cost in the midwest.
Q2. Do i need an accountant to keep track of my income and expenses and to tell me how much to pay in taxes, etc? or is there a suitable computer program that anyone could recommend to do all of that once the business is setup and running? (quicken, money manager, etc) and just use an accountant to help with the monthly or quarterly taxes and tax returns.
Keep in mind that this would be an extremely small and simple business. 1 person owning and operating 1 delivery vehicle.
Thanks in advance to all that respond.
Answers:
toimagine84: ok so I think you mean that you have to file form 1040 SE for self employment, not form 1099-MISC with the IRS. Form 1099-MISC is something the contractor (ex: FEDEX) have to give to you to show you how much they paid you that year. You don't necessarily have to incorporate. Incorporation (LLC, LLP, CORP, etc.) is mainly for liability purposes. If you're worried that you'll get sued and loose your house and properties because of your subcontract job then yes I would advise you to get incorporated. However, the way I see it if you're just driving around delivering products safely and legally, and you have car insurance and health insurance and whatnot then I don't think you need to. If you are doing self employment, then you will need to file quarterly taxes (not just once a year). You might want to talk to a tax specialist because there's a lot more info than I can post on here. You have to track all your mileage (use a log book) and take out those mileage for personal use (trust me the IRS can tell). Try to put all your receipts in a box so you don't loose them, and use a credit card if possible cause it will track expenses easier. You can use Quickbook to track. I really think you should consult a tax specialist at least on your first year of tax filing. I think HR Block charges $100 per business tax filing. Send me a message if you need more clarification.
2009-07-15 22:26:45
2009-07-16 00:44:19