1099 but Don't Own Equipment

Welcome to Chicago!

No not $48,000.

 

No you're only going to get nailed for maybe 10 or 15k lol....that type of gig you have should only be a temporary solution. 1099 companies, as alluded to earlier, are for people with bad driving or criminal records. The company is clearly a Chicagoland company. They made you get an LLC to cover their behinds. They probably want you to open a business account as well. That way it makes it look like they are hiring ICs. That way they absolve themselves of having to pay out benefits, insurance, social security etc. They don't have to do the work of taking out taxes, taking out child support, etc. I'd argue that these folks who run a company really don't have good enough money to be in business.

 

That may be how the company is getting around this?

 

I used to use TurboTax.
I filled out the fields on the forms and entered whatever I could on Schedule C (I think it was) including per diem but never was in a hurry to hit the submit button. Basically, this way gave me an idea how much I might have owed AND I could still go to a CPA and find more advice in case TurboTax oversaw something.

 

Common practice among many companies. If you don't own equipment then you're not independent contractor and can't write anything off ie fuel, tires, maintenance. If you do work for 1099 company you should set aside some money to pay Internal Rape Services.

 

Maybe op is paid well enough to make it worth it. I'd rather be hired on 1099 (by someone who I trust) than on W-2 and work for the likes of Western Express or Hirschbach and be in a vegetating state of subexistance.

 

Where you 1099ed in 2022 and now are worried about back taxes?
If so.....thats bad
If not. Save 25 to 45k and go buy your own truck. Your already a llc, if you continue working as a 1099 you consult a CPA sooner than later.

 

Just because you don’t have equipment doesn’t mean you don’t have e expenses. Food, uniform, office expenses, uniform, tools for work etc. get creative, 1099 is a big plus unless you enjoy being a tax slave working w2. Make sure you have a good tax person too. And make sure you never file for a return.

 

First of all they are paying you illiegally.