3 ms·

There's paperwork? I was independent pulling in random 1099 work for 5 years and the only extra paperwork I did was "Schedule C". I assume that owning a busin

• tomg 15y ago
  > I assume that owning a business proper would require a ton of forms and licensing. But just doing odd jobs for oneself? I didn't think anything special was required. You don't need anything at all to do odd jobs under a 1099. I probably should not have said "officially self-employed" as that isn't really a thing. I meant I've gone through the hoops to become a sole-proprietor business. If you wanted to incorporate you basically just file a few forms and sign on a few lines. It does not involve a great deal of paperwork, and even that can be reduced to signing on a few lines if you use an accountant. I'm not an expert but the reason that I believe a lot of people in your position (1099-ing it for N years) incorporate is three-fold: First, liability. Your corp can get sued into bankruptcy but your personal assets are safe. If you're not incorporated someone can sue you directly with more disastrous results. I'm not a lawyer but this is what I'm lead to believe is the case. Second, tax-wise it can be in your favor to be a corp. Third, it just keeps everything separate. Having a company account that I can pay myself out of keeps my books clean.