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Software engineer contractor - What type of business to register? [closed]
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I am taking a position as a 1099'd software engineer. In other words I am taking a contract position and I am going to be paid by my recruiter as a contractor, not employee. I will be handling my taxes ( including employer side taxes ), my payroll, my holidays/vacation etc.
What type of business should i register to get started with my new business?
Can anyone point me to a good reference document on how to get started? What things I need to account for?
Thanks for any advice.
recruitment contracting software-development
asked Jul 13 '16 at 21:23
Kickin MHL
91
closed as off-topic by Wesley Long, keshlam, HorusKol, gnat, The Wandering Dev Manager Jul 14 '16 at 1:21
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – Wesley Long, keshlam, HorusKol, gnat, The Wandering Dev Manager
suggest improvements |Â
up vote
1
down vote
favorite
I am taking a position as a 1099'd software engineer. In other words I am taking a contract position and I am going to be paid by my recruiter as a contractor, not employee. I will be handling my taxes ( including employer side taxes ), my payroll, my holidays/vacation etc.
What type of business should i register to get started with my new business?
Can anyone point me to a good reference document on how to get started? What things I need to account for?
Thanks for any advice.
recruitment contracting software-development
asked Jul 13 '16 at 21:23
Kickin MHL
91
closed as off-topic by Wesley Long, keshlam, HorusKol, gnat, The Wandering Dev Manager Jul 14 '16 at 1:21
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – Wesley Long, keshlam, HorusKol, gnat, The Wandering Dev Manager
1
VTC - You need a tax specialist to answer this question, and that's Legal Advice (Off-Topic for The Workplace). S/He's likely going to tell you to form an S-Corporation in the U.S. You can do it with LegalZoom, but that's the equivalent of using Wix.com to build your website. It's always best to get someone who knows what they're doing and also knows what you're doing. (My opinion)
– Wesley Long
Jul 13 '16 at 22:28
You might want to try the Entrepreneurs section of Stack Exchange; starting businesses is their focus.
– keshlam
Jul 13 '16 at 22:36
suggest improvements |Â
up vote
1
down vote
favorite
up vote
1
down vote
favorite
I am taking a position as a 1099'd software engineer. In other words I am taking a contract position and I am going to be paid by my recruiter as a contractor, not employee. I will be handling my taxes ( including employer side taxes ), my payroll, my holidays/vacation etc.
What type of business should i register to get started with my new business?
Can anyone point me to a good reference document on how to get started? What things I need to account for?
Thanks for any advice.
recruitment contracting software-development
asked Jul 13 '16 at 21:23
Kickin MHL
91
I am taking a position as a 1099'd software engineer. In other words I am taking a contract position and I am going to be paid by my recruiter as a contractor, not employee. I will be handling my taxes ( including employer side taxes ), my payroll, my holidays/vacation etc.
What type of business should i register to get started with my new business?
Can anyone point me to a good reference document on how to get started? What things I need to account for?
Thanks for any advice.
recruitment contracting software-development
asked Jul 13 '16 at 21:23
Kickin MHL
91
asked Jul 13 '16 at 21:23
Kickin MHL
91
asked Jul 13 '16 at 21:23
Kickin MHL
91
asked Jul 13 '16 at 21:23
Kickin MHL
91
91
closed as off-topic by Wesley Long, keshlam, HorusKol, gnat, The Wandering Dev Manager Jul 14 '16 at 1:21
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – Wesley Long, keshlam, HorusKol, gnat, The Wandering Dev Manager
closed as off-topic by Wesley Long, keshlam, HorusKol, gnat, The Wandering Dev Manager Jul 14 '16 at 1:21
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – Wesley Long, keshlam, HorusKol, gnat, The Wandering Dev Manager
1
VTC - You need a tax specialist to answer this question, and that's Legal Advice (Off-Topic for The Workplace). S/He's likely going to tell you to form an S-Corporation in the U.S. You can do it with LegalZoom, but that's the equivalent of using Wix.com to build your website. It's always best to get someone who knows what they're doing and also knows what you're doing. (My opinion)
– Wesley Long
Jul 13 '16 at 22:28
You might want to try the Entrepreneurs section of Stack Exchange; starting businesses is their focus.
– keshlam
Jul 13 '16 at 22:36
suggest improvements |Â
1
VTC - You need a tax specialist to answer this question, and that's Legal Advice (Off-Topic for The Workplace). S/He's likely going to tell you to form an S-Corporation in the U.S. You can do it with LegalZoom, but that's the equivalent of using Wix.com to build your website. It's always best to get someone who knows what they're doing and also knows what you're doing. (My opinion)
– Wesley Long
Jul 13 '16 at 22:28
You might want to try the Entrepreneurs section of Stack Exchange; starting businesses is their focus.
– keshlam
Jul 13 '16 at 22:36
1
1
VTC - You need a tax specialist to answer this question, and that's Legal Advice (Off-Topic for The Workplace). S/He's likely going to tell you to form an S-Corporation in the U.S. You can do it with LegalZoom, but that's the equivalent of using Wix.com to build your website. It's always best to get someone who knows what they're doing and also knows what you're doing. (My opinion)
– Wesley Long
Jul 13 '16 at 22:28
VTC - You need a tax specialist to answer this question, and that's Legal Advice (Off-Topic for The Workplace). S/He's likely going to tell you to form an S-Corporation in the U.S. You can do it with LegalZoom, but that's the equivalent of using Wix.com to build your website. It's always best to get someone who knows what they're doing and also knows what you're doing. (My opinion)
– Wesley Long
Jul 13 '16 at 22:28
You might want to try the Entrepreneurs section of Stack Exchange; starting businesses is their focus.
– keshlam
Jul 13 '16 at 22:36
You might want to try the Entrepreneurs section of Stack Exchange; starting businesses is their focus.
– keshlam
Jul 13 '16 at 22:36
suggest improvements |Â
1 Answer
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In the USA, things are changing. It feels like a game of chess. First, the government makes laws, people decide based on the laws what type of business to be. Then, the laws change because some enterprising people found a loophole.
I advise you to see a business attorney to get a better answer. Having said that, here is my insight, as a former IT business owner with contracts from small to million dollar ones with Compaq and HP.
First, get insurance to cover any lawsuits. Even if you blocked all personal liability, you can still get sued personally if an attorney can prove you are personally liable for a software failure that cost a company money. Even if you have an LLC, if there is proof that your personal actions caused a problem, they will come after you personally. I had $1,000,000 coverage. It costs about $2000 per year now...about $1 per hour of your labor..so add that into your charges.
Second, decide what your plans are for growth? If you plan on staying small, a personal business will work fine. If you want to look bigger than you are, go with an LLC...limited liability corporation. LLC is a good way to prepare for converting to a standard corp with stock options.
Next, get a CPA to handle your taxes. He can save you more than what he charges, so he is worth it.
Next, get a billing company. You don't make money doing paperwork. You make money programming. By getting a billing company, you can let people who are efficient at billing handle it instead of wasting your own time.
Finally, look to hire on 1099 other techs. DOn't do everything yourself. Let others work for you, of course charge more per hour than they charge you, so all that they do is make money for you. The business attorney will help you to know how to accomplish this, legally.
After that, PROFIT!
answered Jul 14 '16 at 0:24
Sensii Miller
22819
suggest improvements |Â
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
1
down vote
In the USA, things are changing. It feels like a game of chess. First, the government makes laws, people decide based on the laws what type of business to be. Then, the laws change because some enterprising people found a loophole.
I advise you to see a business attorney to get a better answer. Having said that, here is my insight, as a former IT business owner with contracts from small to million dollar ones with Compaq and HP.
First, get insurance to cover any lawsuits. Even if you blocked all personal liability, you can still get sued personally if an attorney can prove you are personally liable for a software failure that cost a company money. Even if you have an LLC, if there is proof that your personal actions caused a problem, they will come after you personally. I had $1,000,000 coverage. It costs about $2000 per year now...about $1 per hour of your labor..so add that into your charges.
Second, decide what your plans are for growth? If you plan on staying small, a personal business will work fine. If you want to look bigger than you are, go with an LLC...limited liability corporation. LLC is a good way to prepare for converting to a standard corp with stock options.
Next, get a CPA to handle your taxes. He can save you more than what he charges, so he is worth it.
Next, get a billing company. You don't make money doing paperwork. You make money programming. By getting a billing company, you can let people who are efficient at billing handle it instead of wasting your own time.
Finally, look to hire on 1099 other techs. DOn't do everything yourself. Let others work for you, of course charge more per hour than they charge you, so all that they do is make money for you. The business attorney will help you to know how to accomplish this, legally.
After that, PROFIT!
answered Jul 14 '16 at 0:24
Sensii Miller
22819
suggest improvements |Â
up vote
1
down vote
In the USA, things are changing. It feels like a game of chess. First, the government makes laws, people decide based on the laws what type of business to be. Then, the laws change because some enterprising people found a loophole.
I advise you to see a business attorney to get a better answer. Having said that, here is my insight, as a former IT business owner with contracts from small to million dollar ones with Compaq and HP.
First, get insurance to cover any lawsuits. Even if you blocked all personal liability, you can still get sued personally if an attorney can prove you are personally liable for a software failure that cost a company money. Even if you have an LLC, if there is proof that your personal actions caused a problem, they will come after you personally. I had $1,000,000 coverage. It costs about $2000 per year now...about $1 per hour of your labor..so add that into your charges.
Second, decide what your plans are for growth? If you plan on staying small, a personal business will work fine. If you want to look bigger than you are, go with an LLC...limited liability corporation. LLC is a good way to prepare for converting to a standard corp with stock options.
Next, get a CPA to handle your taxes. He can save you more than what he charges, so he is worth it.
Next, get a billing company. You don't make money doing paperwork. You make money programming. By getting a billing company, you can let people who are efficient at billing handle it instead of wasting your own time.
Finally, look to hire on 1099 other techs. DOn't do everything yourself. Let others work for you, of course charge more per hour than they charge you, so all that they do is make money for you. The business attorney will help you to know how to accomplish this, legally.
After that, PROFIT!
answered Jul 14 '16 at 0:24
Sensii Miller
22819
suggest improvements |Â
up vote
1
down vote
up vote
1
down vote
In the USA, things are changing. It feels like a game of chess. First, the government makes laws, people decide based on the laws what type of business to be. Then, the laws change because some enterprising people found a loophole.
I advise you to see a business attorney to get a better answer. Having said that, here is my insight, as a former IT business owner with contracts from small to million dollar ones with Compaq and HP.
First, get insurance to cover any lawsuits. Even if you blocked all personal liability, you can still get sued personally if an attorney can prove you are personally liable for a software failure that cost a company money. Even if you have an LLC, if there is proof that your personal actions caused a problem, they will come after you personally. I had $1,000,000 coverage. It costs about $2000 per year now...about $1 per hour of your labor..so add that into your charges.
Second, decide what your plans are for growth? If you plan on staying small, a personal business will work fine. If you want to look bigger than you are, go with an LLC...limited liability corporation. LLC is a good way to prepare for converting to a standard corp with stock options.
Next, get a CPA to handle your taxes. He can save you more than what he charges, so he is worth it.
Next, get a billing company. You don't make money doing paperwork. You make money programming. By getting a billing company, you can let people who are efficient at billing handle it instead of wasting your own time.
Finally, look to hire on 1099 other techs. DOn't do everything yourself. Let others work for you, of course charge more per hour than they charge you, so all that they do is make money for you. The business attorney will help you to know how to accomplish this, legally.
After that, PROFIT!
answered Jul 14 '16 at 0:24
Sensii Miller
22819
In the USA, things are changing. It feels like a game of chess. First, the government makes laws, people decide based on the laws what type of business to be. Then, the laws change because some enterprising people found a loophole.
I advise you to see a business attorney to get a better answer. Having said that, here is my insight, as a former IT business owner with contracts from small to million dollar ones with Compaq and HP.
First, get insurance to cover any lawsuits. Even if you blocked all personal liability, you can still get sued personally if an attorney can prove you are personally liable for a software failure that cost a company money. Even if you have an LLC, if there is proof that your personal actions caused a problem, they will come after you personally. I had $1,000,000 coverage. It costs about $2000 per year now...about $1 per hour of your labor..so add that into your charges.
Second, decide what your plans are for growth? If you plan on staying small, a personal business will work fine. If you want to look bigger than you are, go with an LLC...limited liability corporation. LLC is a good way to prepare for converting to a standard corp with stock options.
Next, get a CPA to handle your taxes. He can save you more than what he charges, so he is worth it.
Next, get a billing company. You don't make money doing paperwork. You make money programming. By getting a billing company, you can let people who are efficient at billing handle it instead of wasting your own time.
Finally, look to hire on 1099 other techs. DOn't do everything yourself. Let others work for you, of course charge more per hour than they charge you, so all that they do is make money for you. The business attorney will help you to know how to accomplish this, legally.
After that, PROFIT!
answered Jul 14 '16 at 0:24
Sensii Miller
22819
answered Jul 14 '16 at 0:24
Sensii Miller
22819
answered Jul 14 '16 at 0:24
Sensii Miller
22819
answered Jul 14 '16 at 0:24
Sensii Miller
22819
22819
suggest improvements |Â
suggest improvements |Â
1
VTC - You need a tax specialist to answer this question, and that's Legal Advice (Off-Topic for The Workplace). S/He's likely going to tell you to form an S-Corporation in the U.S. You can do it with LegalZoom, but that's the equivalent of using Wix.com to build your website. It's always best to get someone who knows what they're doing and also knows what you're doing. (My opinion)
– Wesley Long
Jul 13 '16 at 22:28
You might want to try the Entrepreneurs section of Stack Exchange; starting businesses is their focus.
– keshlam
Jul 13 '16 at 22:36