Questions tagged [self-employment]
This tag is to be used for all questions related to Self Employment. Typically this tag should be accompanied by a geography tag indicating the region for the question along with other specific topic tags.
39
questions
32
votes
4
answers
18k
views
When should I start an LLC for my side work?
I am doing quite a bit of sidework this year and wondering at what point would it be a good idea to "start a business" and bill through that.
- 809
6
votes
1
answer
483
views
Which is more advantageous: Lifetime ISA or SIPP?
I should preface that I am a self employed sole trader in my early twenties, and a basic rate taxpayer averaging somewhere between £28-32,000 per annum. The variation not only arises due to the nature ...
- 185
4
votes
1
answer
3k
views
Indian citizen wants to work as a freelancer for Europe. How to pay tax in India?
I got an offer to work as a freelancer for a European company. In Europe, it's like you need to set up a small legal entity on your name but is this the same in India? How can I do freelancing in ...
- 41
80
votes
4
answers
14k
views
The USA "self-employment tax dodge" mystery
For non-US readers:
In the US, for those who are self-employed, there are many specific taxes. One particular tax is the confusingly named "The Self-Employment Tax".
Thus, if you are self-employed, ...
- 13.8k
33
votes
11
answers
6k
views
What warnings would you tell a friend about to enter a multi-level marketing (MLM) business venture?
Imagine you had a friend who was about to join a multi-level marketing (MLM) business, despite your advice to the contrary. Another friend or family member had already convinced them the opportunity ...
- 31.7k
8
votes
5
answers
17k
views
Is "premium tax credit repayment" deductible as health insurance cost for self-employed?
Under the ACA, you estimate your income for the year when signing up for a health insurance plan via the exchange. If you are eligible for a subsidy, it is calculated based on this estimated income, ...
- 24k
8
votes
1
answer
3k
views
What are the benefits and downsides to an LLC vs. Sole Proprietorship vs. Individiual?
As a followup to my previous question, what benefits are there for an LLC vs. a Sole Proprietorship? What are advantages and disadvantages to both and also vs. just being paid as a person?
- 809
2
votes
3
answers
437
views
LLC-SCorp to self - actually, does the corp pay payroll taxes?
In the USA. Here are the two common scenarios for the self-employed:
A. Joe makes 100,000 over the year. It's paid to him as 1099 payments from his various clients. Joe pays the many taxes on that.
...
- 13.8k
38
votes
3
answers
11k
views
In USA, can I set up a one-person corporation and pay myself mainly through dividends?
In the UK an IT-contractor can save in taxes by opening a company, paying themselves a minimum wage as a salary and then taking a larger amount of income as dividends.
Is this possible (for a single-...
- 991
25
votes
2
answers
7k
views
Do I need to pay taxes as a food delivery worker if I make less than $12,000 in a year?
I started working for Doordash, a food delivery service. Technically I think I am a self-employed contractor.
I saw online that you don't have to declare taxes if you make less than $12,200 in a year. ...
- 303
16
votes
4
answers
4k
views
Why is this tutor agency startup so highly valued by investors?
I am currently a university student, looking to make a bit of extra money. I got excellent grades in high school, so I was looking into tutoring.
I figured from research that I could get some clients ...
- 303
10
votes
3
answers
7k
views
Full-time work + running small side business: Best business structure for taxes?
Currently I have a full time job (IT industry) but from time to time I do a side project.
Most of the times my clients agree to pay me cash as the amounts are not large.
However, last year there ...
Frank
7
votes
1
answer
7k
views
W2 and 1099 (self employed) income in same year: social security taxable income limit?
For 2013, the maximum taxable social security income for employees on wages is $113,700, and for self employed individuals it is also $113,700 (though obviously at a higher rate).
Suppose a person is ...
- 307
7
votes
2
answers
523
views
I may earn a lot of cash soon through self-employment on a lucrative project. How to handle the tax?
I'm in Canada, and am young and don't know anything about finance.
I've been working part-time as a software consultant for a friend who's starting a marketing company. He recently landed a job with ...
- 173
6
votes
1
answer
4k
views
How to determine whether 1099-MISC income is from self-employment?
I have income that was reported on Form 1099-MISC, Box 7 (nonemployee compensation). I understand that if it is self-employment income, it should be reported on Schedules C and SE, and I would owe ...
- 6,971
6
votes
1
answer
1k
views
Switching From Employee to Independent Contractor
I've read a few different questions on here regarding the breakdown of employee vs independent contractor, but my situation has details that are quite different, hence, the question.
When I was hired,...
- 317
5
votes
2
answers
225
views
Taxes for citizen of EU country #1 living in EU country #2 and working from home for non-EU country #3?
I'm an Italian citizen, looking to move to Czech Republic; I'm going to work from home for a Turkish company.
Who do I pay taxes to, and what kind of taxes? Also, when do I start reporting what I ...
- 51
5
votes
2
answers
2k
views
Is self-employed work performed out of state for a California organization "California source income?"
I recently received a request from the California Franchise Tax Board saying that they believe I need to file a tax return. I am a sole proprietor programmer, with a client in California who paid me ...
- 153
4
votes
1
answer
705
views
Taxes mileage deduction for delivery worker and methods of proof
I started working for Doordash as a food delivery worker (self-employed contractor I think is the status).
I read (Do I need to pay taxes as a food delivery worker if I make less than $12,000 in a ...
- 303
4
votes
1
answer
181
views
Changing "Tax Deduction at Source" to "Zero" - How to request your employer not to hold your taxes?
In Canada/Ontario, in both cases of permanent and contract employment, is it possible that I request my employer that they pay me my full before-tax salary and I pay the tax at the end of the year ...
- 143
4
votes
1
answer
5k
views
What do I use for the article number and % rate on the W-8BEN form, for publishing & selling my ebooks?
I am an Indian citizen living in Singapore. I am publishing ebooks on Amazon, Apple, etc., and I have just gotten the EIN. I need help in Part II of the W-8BEN form, where it asks for the Article ...
- 49
4
votes
1
answer
4k
views
When do I pay taxes if I'm self employed?
This is my first time paying/filing for taxes.
Starting April 2013, I started getting paid as a part time independent contractor. When I get paid, nothing is withheld.
I have no idea when to pay ...
- 151
4
votes
3
answers
2k
views
Can I open a Solo 401(k) if I am an independent contractor but also work part-time as an employee?
I am contributing to the 401(k) at my part time job, but want to know if I can also open a Solo 401(k) to delay taxes on income from my work as an independent contractor.
- 443
3
votes
1
answer
237
views
Should I cash out or rollover 401(k) securities?
I recently changed employment and have securities in my former employer's 401(k) plan.
The cash component of the 401(k) I am rolling over into an SEP-IRA.
What I need advice on is whether I should ...
- 3,933
3
votes
1
answer
617
views
Do I need an ABN for self-employment?
I work as a private tutor in addition to my full-time job in the public sector. I know that I will need to include any additional income on my tax return since I will need to pay an extra tax. Do I ...
- 198
3
votes
1
answer
319
views
Self Employed 401k: contributions vs more available deductions
I'm in a unique situation this year where I worked self-employed 1099 for a few months and am full time W-2 for the rest. My full time job does not offer a 401k, but I can open a self-employed 401k ...
- 381
3
votes
1
answer
2k
views
As a freelancer, how to receive money from overseas company to my individual bank account in India?
I am working as a freelance software developer. Recently I got a project from an overseas company. I asked them to send money through ICICI Bank Money2India.
The first payment made it successfully ...
- 31
3
votes
2
answers
321
views
How to pay N.I contributions when both employed and self-employed?
I make less than £6k a year from my self-employed work, and N.I is taken off my employment PAYE.
Should I be paying N.I contributions for my self-employed work as well?
- 31
3
votes
1
answer
226
views
Taxes for a foreign freelancer getting paid in the USA
I, a Mexican citizen, was living in Portland last year and had a TN work visa, but decided to come back home. The company I was working for decided they wanted to keep working with me but as a ...
- 31
2
votes
1
answer
236
views
If I use 1099 or S-Corp, can I deduct rent from my income?
If I live in another state in USA and either still pay rent or mortgage, but rent an apartment in Silicon Valley and work there to earn money as a business (1099 or S-Corp), then can't I deduct that ...
- 1,593
2
votes
1
answer
251
views
Can an S-Corp pay the sole owner/employee with a 1099?
Suppose a person has a one-person S Corporation, and the corporation is paying the owner/sole employee with a 1099. The owner then pays Self-Employment tax on a Schedule C when filing. Is this ...
- 23
2
votes
1
answer
1k
views
My fellowship income was reported in Box-7 of 1099-MISC. How do I report it?
I am a grad student, and am supported by a living stipend from a government supported fellowship program. The contracted company managing this program sent everyone MISC-1099 forms, and reported the ...
- 191
2
votes
1
answer
78
views
What is the contribution limit for self-employed person to their SEP-IRA?
For a few years I've been contributing to a SEP-IRA for myself as the sole employee/employer. Until this year, I have been calculating my max contribution as 25% of my total SE income. I realize that ...
- 423
1
vote
1
answer
38
views
Is a foreign LLC exempt from self-employment tax?
A site writes,
If you conduct your business through a foreign LLC, your salary paid by the foreign LLC would not be subject to US Social Security and Medicare Tax. And, it would be eligible for the ...
- 27
1
vote
1
answer
628
views
offshoring work and tax dilemma
My friend in USA who is a US citizen wants to hire her cousin from her native country and will be paying the relative as independent contractor.
Dilemma:
She does not have a registered business ...
- 163
1
vote
3
answers
2k
views
Do I need to pay quarterly 1040 ES and 941 (payroll)?
I am self employed with an LLC that I elect to pay S-corp taxes on. I am the only employee. When you're self employed, if your taxes are greater than $1000, you have to pay quarterly taxes estimated ...
- 171
1
vote
1
answer
97
views
Why isn't the `flat rate scheme` favourable for Limited Companies anymore?
I have been registered as flat rate scheme since 2012. At which point I kept 12.5% (working in IT) of my vat invoices.
However in 2017 they changed the laws on the % I believe.
My accountant said I ...
- 219
1
vote
1
answer
156
views
Becoming self-employed alongside a full time job, working abroad in the UK
I am a foreigner working full-time in the UK and studying part time at Uni. I want to study full time. In my old country, I used to draw and fix computers to earn some extra money.
What should I do ...
- 51
0
votes
1
answer
577
views
Self-employed, Medicare, Retiree: Box 5 on 1099-R is empty; is health insurance deductible (1040, Line 29)?
If Box 5 on a 1099-R is empty, does that mean that health insurance premiums for a self-employed retiree can be deducted on line 29 of the 1040? (Assumption: All other requirements for 1040 line 29 ...
- 511