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most companies this size pay the 3 individuals on 1099, ie independent consultants. no payroll tax on 1099 (at the company level)
by solsenNet 15y ago
most companies this size pay the 3 individuals on 1099, ie independent consultants. no payroll tax on 1099 (at the company level)
- loschorts 15y agothis sounds useful. Thanks! I'll look into it.
- captk 15y agoBe careful, the IRS is on the lookout for misclassification of employees as independent contractors. It wouldn't be too hard to figure out either, since the majority of your income would be coming from a single "client" on your tax returns, and that amount would match the totals for the company. Make sure you read and understand the rules or you could end up liable for penalties and back taxes. http://www.irs.gov/businesses/small/article/0,,id=99921,00.html http://www.irs.gov/businesses/small/article/0,,id=99921,00.h...
- staunch 15y agoFYI: That rules out providing health insurance on a employee group plan.