Re: Self-employed consultant questions -- CONSULT400

Based on my experiences, very sound advice.
Kim
Sent from my iPhone by IBM Notes Traveler
> On Mar 8, 2016, at 4:29 PM, Kristen Henry <klhnry@xxxxxxxxxxxx> wrote:
>
>
> 1) Create an LLC (or S-Corp)
> 2) Open a business Checking Account and Money Market account
> 3) Get some 'Books' software and Invoice the customer under this
Business
> Name
> 4) Put 20-25% of your gross earnings into the MM Account (for taxes)
> 5 Get a CPA that works with small businesses. He can file an IRS form
to
> have you file taxes as an S-Corp (no Corp. tax).
> 6) Pay yourself Shareholder Distributions (ask your CPA how often and
when
> you will pay yourself a regular wage)
> 7) If you lease your car, you can deduct the percentage-used-for-work of
all
> car expenses (otherwise document mileage - keep a book in your glove
box)
> 8) Do not co-mingle your money. Business expenses and deposits use the
> business checking and CC
> 9) Get Liability insurance (1 or 2 Million)
>
> Pick up some small other jobs so you don't have 100% of your income from
the
> one job for an extended period of time.
>
> Kristen
>
>
>
> -----Original Message-----
> From: Consult400 [[1]mailto:consult400-bounces@xxxxxxxxxxxx] On Behalf
Of Rusty
> Jackson
> Sent: Tuesday, March 08, 2016 3:11 PM
> To: 'Consulting on the IBM i (AS/400 and iSeries)'
> Subject: Re: [Consult400] Self-employed consultant questions
>
> I agree Steve. I used to receive 10 or more 1099 forms each year from
> clients. Now if I receive more than a couple of them a year it is
strange!
>
>
> Rusty J
>
> -----Original Message-----
> From: Consult400 [[2]mailto:consult400-bounces@xxxxxxxxxxxx] On Behalf
Of Steve
> Richter
> Sent: Tuesday, March 08, 2016 4:42 PM
> To: Consulting on the IBM i (AS/400 and iSeries)
> Subject: Re: [Consult400] Self-employed consultant questions
>
> I see no sign of the IRS cracking down on contractors. Heck it is rare
> that I even receive a 1099 from sites I work at. Which tells me the IRS
> does not pay much attention at all.
>
>
>> On Tue, Mar 8, 2016 at 2:38 PM, Dan <dan27649@xxxxxxxxx> wrote:
>>
>> Thanks, gentlemen.
>>
>> Rob, have I previously mentioned Kalamazoo? I just finished a stint
> there,
>> but didn't think I'd referenced this anywhere on the midrange lists.
> Also,
>> ditto on the IRS cracking down on contractors. I found:
>
[3]https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-
> Contractor-Defined
>> It seems pretty clear (and it's how I remember it when it was news)
that
>> the IRS actually goes after the "employer", and not the contractor, so
I'm
>> guessing I can't get hurt if the IRS comes looking. Does anyone have
>> experience with that?
>>
>> I've done all my own taxes up to this point, but I think I'm going to
have
>> to bite the bullet and find a CPA for this and other new tax situations
>> that are coming up this year.
>>
>> - Dan
>>
>>> On Tue, Mar 8, 2016 at 7:19 AM, Rob Berendt <rob@xxxxxxxxx> wrote:
>>>
>>> IDK if the ICCP (Institute for the Certification of Computer
>>> Professionals) has this information available. I let my certification
>>> lapse quite some time ago but I still get emails.
>>>
>>> I also seem to remember the IRS cracking down on long term contractors
>>> about 35 years ago. Kalamazoo used to be flush with these and the IRS
>>> decided that was a time when they should just put them on payroll. Of
>>> course, a great number of them just had to scramble for work
elsewhere.
>>>
>>>
>>> Rob Berendt
>>
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