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what tax information do i need to be an independent contractor?
I am looking to become an independent contractor, but i am unsure of where to get started and what information I should keep.
Public Comments
- Be prepared to pay a whopping 15% self employment tax right off the top. You must also pay quarterly taxes to avoid a penalty. You'll need a license, liability insurance, worker's compensation policy, city license, fed & state Id number if you have employees, and apply for a "DBA" (doing business as) unless you use your real name as your company name. You will also have to file a schedule C tax form and expect to pay your tax preparer three times more than if you didn't have a business. If you are serious about becoming a contractor, corporations pay less tax than sole proprietors do. Incorporate right from the start and you'll save money. Good Luck!!!
