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opinion needed

termiteguy

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I was offered a job today good money commission however it a 1099 pay system I have been in the termite business for a long time and have always been on payroll. What are the pro's and con's of being independent contractor
 

COCA COLA COWBOY

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You can play a lot of games with your taxes. You need to save for when you have to pay taxes. Chances are your new employer is opening himself up to liability.

I think you should think about starting your own company. Do you have any idea how much your employer is raking in? In San Diego, termite guyss absolutely kill it!
 

bocco

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When I worked with a 1099 setup I would give my employer a bill for hours worked every two weeks. You have to remember to pre pay taxes quarterly.

COCA COLA COWBOY brings up a good point about starting your own company. This could be the way to get started. Then your company could bill your employer instead of you personally.

I'm sure we have a few people on here experienced in that sort of thing. Would love to hear them chime in on how to proceed.
 

Richard.E

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Pre paying taxes quarterly is a big part of it. I learned the hard way why that's important haha.

You can always write off a lot of items, phone bill, gas, car insurance, etc.
 

kiethco

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1099 is good for your "employer", not so good for you. If your current elmpoyer wants to convert you to 1099, start saving for the penalties now, mostly on his end. Does the majority of your work come from him? If not for him, do you have a viable business or just a hobby?I own a commercial cleaning company, an industry loaded with dirty contractors. I occasionally use subs but if I do I make sure they're incorporated, that's the only real protection for me according to the lawyers.
The advice of starting your own company has validity especially since you are essentially doing that by going 1099.
 

termiteguy

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Thanks for the replies starting my own is in the future plans just not just yet for me to get started I would need about 50 thousand for computer programs equipment and of coarse six months of bills
 

2Driver

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Get yourself a 1M liability policy or have them buy you one. Should only be about $400
 

mesquito_creek

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3 words!... Self Employment Tax

15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).

YOU PAY IT ALL... up until now your employer has been paying half and you will now pay the whole nut. That's a 8% pay cut, so you better be making at least that much more to be an independent contractor, I would say a lot more... (assuming money is your only motivator)
 

Waterjunky

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When budgeting for staff most every business has a multiplier to account for the fully loaded costs of an employee. in many cases this is something like 1.4 or 1.8 times the gross pay of that employee. If you go to a 1099 type of situation you now get to carry all of that on you instead of them. Make sure you are going to this take this into account. Again if you are using this as a gateway into your own business, then the plan changes a little but still keep this in mind.
 
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