Thank You

[Copychick]

Re: Thank You

So when you say an sub-contractor you're saying that I would be responsible for my own taxes as well? Does that mean I have to register with the state, get an EIN and all that? If that's the case I simply cannot afford the fees and headaches involved, having just witnessed this with the tool and die shop. I'm going to think about everything long and hard, I don't want to get myself into a bad situation between the 2 jobs..I'll check back in soon(don't have internet at the shop yet,AT&T sucks!) Thanks again!

[Copychick]

Re: Thank You

"boyfriend"? Why not husband or fiance? You're leaving your career and you're a woman that can fix stuff...what's he waiting for?

Good luck!

My "boyfriend" and I have been together for 7 years. We've had many obstacles to overcome(ie-children,finances) and have just become empty-nesters in the past year. We know we're "stuck" with each other by now and will eventually get engaged/married. But at this point with the new company and all we're not putting a time frame on anything. He has been jokingly muttering it under his breath for a couple of years now(lol)!

[rthonpm]

Re: Thank You

You don't need an EIN and all: since it's just you the best option would be to just do a 1099 for everything. I've done that for quite awhile for any independent or contractual jobs I've picked up. To the company, it's payment to a contractor, to you it makes the money legal and most tax software or any accountant can figure everything out pretty easily in terms of taxes.

[kingarthur]

Re: Thank You

A bientot mon vie....Bon Chance....

[kingpd@businessprints.net]

Re: Thank You

You wouldn't need an EIN, rather being an individual you'd give them your social security number. By law they don't have to report 1099 information to the IRS unless it's $600 or more. Most places report any amount. There would be no withholding of the amount you earn. It would be up to you to report the income on your 1040 form and to send in extra money to the IRS/State/Local if you felt you were making a boat load of money. Most likely you wouldn't need to.

A little more on EIN numbers. The only entities required to have one are incorporated entities or businesses with more than one owner. So a partnership, C corp, S corp, or LLC would get one; and proprietors with employees.

It's really not complicated. You'll either give the 1099 to your accountant or include it as income on your 1040. If it's just you or you form an LLC and you're the only owner then you'll put the 1099 income on schedule C or C-EZ and it carries over to line 12 of your 1040. If you start an s corp or bring on a partner then you'll actually not receive a 1099 but fill out a schedule E and carry the amount to line 17 of the 1040. Your business in the last case would also issue you and all other owners a k-1.

So keep it simple as just yourself, but maybe have a contract between you and your "old employer" as to who is liable for damages in case of breaking the machine or in a case where someone was injured by the machine so your personal assets are safe; or have a liability insurance.

So when you say an sub-contractor you're saying that I would be responsible for my own taxes as well? Does that mean I have to register with the state, get an EIN and all that? If that's the case I simply cannot afford the fees and headaches involved, having just witnessed this with the tool and die shop. I'm going to think about everything long and hard, I don't want to get myself into a bad situation between the 2 jobs..I'll check back in soon(don't have internet at the shop yet,AT&T sucks!) Thanks again!

[Copychick]

Re: Thank You

thank you KingPD for all of the useful information. I'm going to digest it all and see how my current job goes as far as having a few spare hours during the day. If I decide to do it ThEN I'll contact my old employer with a proposal. It's a lot to think about right now and I think there's a holiday coming up... oh yeah, Christmas...I should start shopping soon!

[prntrfxr]

Re: Thank You

Most of the information you can find on the internet. Just make sure to check state and local regulations, but EIN is not required in Connecticut if you're a sole proprietor. You should check out what help or advice is available in your local city/county on the web (county has websites in the south, the north is organized more by city). Some links I found helpful whether you are helping your boyfriend with his or starting your own are:

http://www.sba.gov/
http://www.entrepreneur.com/