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.

Filter by
Sorted by
Tagged with
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.
Jeff Martin's user avatar
6 votes
1 answer
493 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 ...
Talisman's user avatar
  • 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 ...
Smitha's user avatar
  • 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, ...
Fattie's user avatar
  • 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 ...
Chris W. Rea's user avatar
  • 31.7k
9 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?
Jeff Martin's user avatar
8 votes
5 answers
18k 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, ...
BrenBarn's user avatar
  • 23.9k
2 votes
3 answers
445 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. ...
Fattie's user avatar
  • 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-...
x457812's user avatar
  • 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. ...
deliveryguy's user avatar
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 ...
John Hon's user avatar
  • 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 ...
user avatar
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 ...
Jeff Evans's user avatar
7 votes
2 answers
524 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 ...
Carson Myers's user avatar
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,...
ctorx's user avatar
  • 317
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 ...
Nate Eldredge's user avatar
5 votes
2 answers
226 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 ...
user34692's user avatar
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 ...
grateful-planes's user avatar
4 votes
1 answer
729 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 ...
deliveryguy's user avatar
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 ...
ShrimpCrackers's user avatar
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.
rjdevereux's user avatar
4 votes
1 answer
192 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 ...
Amin Ba's user avatar
  • 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 ...
user10598's user avatar
3 votes
1 answer
638 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 ...
1123581321's user avatar
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 ...
Ajil's user avatar
  • 31
3 votes
1 answer
320 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 ...
Miro's user avatar
  • 381
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 ...
Peter K.'s user avatar
  • 3,933
3 votes
2 answers
338 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?
user13601's user avatar
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 ...
Fera03's user avatar
  • 31
2 votes
1 answer
247 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 ...
nonopolarity's user avatar
  • 1,593
2 votes
1 answer
351 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 ...
user104071's user avatar
2 votes
1 answer
240 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 ...
Matt Chambers's user avatar
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 ...
argentum2f's user avatar
1 vote
1 answer
157 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 ...
Tantal's user avatar
  • 51
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 ...
Ser Pounce's user avatar
1 vote
1 answer
43 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 ...
user5656's user avatar
1 vote
1 answer
629 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 ...
TPR's user avatar
  • 163
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 ...
Jamie Hutber's user avatar
0 votes
1 answer
595 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 ...
RJo's user avatar
  • 511