Thursday, June 3, 2010

1099 Independent Contractor:

Working as a 1099 Contractor means you are in business for yourself as a sole proprietor or as a corporation. Your clients typically issue you a contract to work on a special project. All money paid to you is paid on an untaxed basis. It is your responsibility to file and pay the appropriate taxes directly to the IRS.
Workers considered independent contractors fill the following roles:
• Work with multiple clients.
• Pays his/her own taxes and files the required government forms.
• Social Security taxes are the sole responsibility of the independent contractor.
• Obtains his/her own benefits including workers’ compensation, disability, etc. The independent contractor is not entitled to any typical employee benefits from any government agency.
• Deducts business expenses from his/her income tax.
are several advantages to working as an Independent Contractor including:
1. Independent Contractors can offer their services to the general public instead of just one employer.
2. With multiple clients or customers, the independent contractor is free from control by any one firm.
The independent contractor is free to work the hours they choose, usually also free to work for more than one client at a time

Source is providing business documents filing in all 50 states.

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