RUGBY

I have been out of work since Dec '08 and have had no success in landing a permanent full-time job. I've been approached by a consulting body-shop to perform some '1099 Contracting' work. I'm not very familiar with this type of employment arrangement, having worked for The Man for 20+ years.

It seems to me that the consulting group will be basically paying me rate*hours. I believe I'm then responsible for paying fed & state income taxes, social security, unemployment taxes. That is the simple part, I hope.

What I'm unsure about is how should I set up this arrangement. I established an LLC last year when a work opportunity was presenting itself, however I did not land the job. Should I accept payment through the LLC?

Basically, doing the work isn't the issue - - - it is dealing with the independent consulting side that is causing me some concern.

If anyone has experience, I would appreciate talking if you have some time. I can PM my contact info. If your available today (Mon 2/22) it would be great as they asked me to come in to the city in the morning for a formal interview.

Regards,
Michael

orangebarius

my dad did some 1099 work last yr for his former company. he is retired, but they had a job locally that needed some upgrades/repairs, so he helped them out and would work a few times a month. basically you are self employed and the company pays you directly. you have to file a 1099 tax form and pay taxes at the end of the yr. its just regular personal income tax.

as far as the llc part, i have no idea. just sharing the info that i know above.

S2kMr

I did some 1099 work few years back, at the end of every year they just mailed me the 1099 and I just gave it to my accountant. If you need an accountant to talk to I can recommend you to the my cpa.

Ben

RUGBY

Ben,

Thanks for the referral offer. I actually have an accountant whom I have historically used strictly for tax preparation - - - I'm trying to get into see her for some guidance but she is backed up with tax prep. I may not get to speak to her until next week.

I won't sign anything and the job is not scheduled to start until the 8th or 15th so I have a little time.

Michael

quickshifting

what kind of work do you do?

devs2k

brutal!

RUGBY

From another thread.....

Professional Experience: VP with 20+ years with JPMorgan Chase holding a variety of control and operational jobs in diverse areas including international and corporate controller organizations, middle-office special projects, corporate business continuity and core infrastructure PMO and project manager.

Seeking: Internal control / compliance role (or business manager) in medium to large corporation

I am extremely lucky. I received a generous severance, which included health coverage, based on my years of service.

I've sent 100's of resumes to job-sites but they are an employment black hole. Any traction on the job-front has been the result of referrals. Luckily, I worked hard and didn't make enemies so I've had luck at least getting decent referrals. I've gone through 5 interviews at two separate companies but it is a buyers market and if you don't fit 100%, they will find someone who does - - -which both companies did.

Langelo DeMysterioso

I worked in a large firm before and we hired many independent contractors. Each year we sent out 1099s to those contractors at the end of the year. Its taxable income and its not really going to matter if you get paid through your LLC or not. However if you're planning to do business you can sign everything (contracts, etc) under your LLC to limit your liability. So yes you can get paid under your LLC to prove this is income associated with your business. Most of the 1099s I sent out were addressed to individuals. LLC was not specified.

Mr_Z

Michael,

The company that I work for (New York Life Investment Management) just literarly posted a couple of opening in their Compliance department last week. I believe the openings are VP to Director level positions. I can send you a copy of the job descriptions if you would like.

PM me your e-mail address if you are interested and I can send you the job descriptions and if you are interested in applying, I can submit your resume for you. Let me know.

Also, the location would be in Parsippany, NJ

-Adam

RUGBY

Adam,
Thanks for the generous offer.
PM sent.
Michael