You have two basic choices on how to organize your biz: single proprietorship, and corporate. Never ever do business as a partnership!
The single proprietorship requires nothing much at all. In some jurisdictions you may need a local or state business license, usually just a few dollars and a simple form. You file a Schedule C with your 1040 federal return for single proprietorships. You do not even need a federal tax number (EIN) unless you have employees other than yourself (but go ahead and get an EIN since it makes you seem more official). Also go ahead and get a state sales tax number even if it is not automatically included in the state business license process (you may be able to avoid some sales tax if you have it). Corporations offer some liability protection, but not as much as they used to. You form a corporation by filing articles of incorporation with the state (usually with the Secretary of State's office). It is not hard to do (I have done probably 10 over the years), but if you look around you should be able to get a hungry lawyer to do it for less than 200 bux. Elect Subchapter S status with IRS on a simple form, then you pay no separate corporate income tax (the taxation is like that of a partnership). Get an EIN at the same time. Using a Sub S corporation is a little more trouble, but I find it is worth it. Immediately hunt around for a better health insurance deal, but beware of the scams out there. If you and your family are relatively healthy, forget dental and drug coverage and go with major medical with a hefty deduction. You may be able to get a policy for half of what your current policy is gonna cost you under the federal portability act. I have been self employed for over 30 years. If I can help with advice or moral support, just let me know. My main company, AnaLog Services, Inc., is involved in oil well logging electronics, a very lucrative little niche market I am well suited to. Syd H. Levine AnaLog Services, Inc. Phone: 270-276-5671 Telefax: 270-276-5588 E-mail: [EMAIL PROTECTED] URL: www.logwell.com ----- Original Message ----- To: "Multiple recipients of list CHIPDIR-L" <[EMAIL PROTECTED]> Sent: Wednesday, October 23, 2002 10:14 AM > >Any one know how I go about setting my self up as a leagal contractor? The potential Big Chez recommended I start with this firm, because some others doing the same type work for them are using it: http://www.automationpartnersinc.com/ The owner is coming here today to discuss issues with me. > Despite that I am trying to get you a new job, > I think that you indeed should start your own > business. My wife found this: "Working for Yourself: Law & Taxes for Independent Contractors, Freelancers & Consultants" http://www.nolo.com/lawstore/products/product.cfm/objectid/68464A84-FD9B-45A 8-8F5A576D33A0DECA/sampleChapter/1 It has some free advice that many of you may find of intrest. Tthe Tax in the US, which when you figure all of the "hidden" taxes is over 50% are a real killer. Liability and health insurance even more so. -- http://www.unusualresearch.com/ http://www.bpaddock.com/ -- Author: Bob Paddock INET: [EMAIL PROTECTED] Fat City Network Services -- 858-538-5051 http://www.fatcity.com San Diego, California -- Mailing list and web hosting services --------------------------------------------------------------------- To REMOVE yourself from this mailing list, send an E-Mail message to: [EMAIL PROTECTED] (note EXACT spelling of 'ListGuru') and in the message BODY, include a line containing: UNSUB CHIPDIR-L (or the name of mailing list you want to be removed from). You may also send the HELP command for other information (like subscribing). -- Author: Syd Levine \(AnaLog\) INET: [EMAIL PROTECTED] Fat City Network Services -- 858-538-5051 http://www.fatcity.com San Diego, California -- Mailing list and web hosting services --------------------------------------------------------------------- To REMOVE yourself from this mailing list, send an E-Mail message to: [EMAIL PROTECTED] (note EXACT spelling of 'ListGuru') and in the message BODY, include a line containing: UNSUB CHIPDIR-L (or the name of mailing list you want to be removed from). You may also send the HELP command for other information (like subscribing).
