Contracting Question

[boydt]

I am not sure this really belongs in the rant and rave area but I couldn't find a better place.


Recently I have been presented the chance of doing some freelance Pro/E design work from home. They would like to treat me like a vendor to them. I would think I need to set up a fed tax ID number... Is this how any of you have done it in this situation?

 

[jvf-design]

you can get a fed tax Id number or if you are a sole-proprietor you can just use your SS#

 

[boydt]

So when they pay me they can just referance my SSN then I would get a 1099 from them at the end of the year?

 

[jvf-design]

Boydt,

You will need to fill out a W-9 file, this is the information you will have to fill out to contract. You can get a copy of this of the government tax form site

I was a sole proprietor and registered the name jvf-designs in my county and used my SS#.

Hope this helps

 

[jvf-design]

Yes to your previous post

 

[survey]

The sole proprietor laws vary by state (I think). If you are not going to do a lot of work from home the sole proprietorship is the way to go. If you start to make a lot of money, you can set up an LLC (with S corp election) pretty easy.





survey

 

[boydt]

A W-9? Isn't that for reporting # of dependants? To determine the witholdings?

 

[jvf-design]

W-9 is Request for Taxpayer ID, take a look at this site and view a w-9 file. [url]http://www.irs.ustreas.gov/formspubs/lists/0,,id=97817,00.ht ml[/url]

W-4 is for reporting dependants and witholdings

John
Edited by: Jason Turk

 

[boydt]

Oops sorry, I was thinking of the W-4.