8
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 31 May 2025
8 points (83.3% liked)
Personal Finance
5723 readers
5 users here now
Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!
Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)
founded 3 years ago
MODERATORS
Appreciate the response even if it might be bullshit ;)
You have mostly confirmed what my research online has found.. which helps me at least feel confident in the steps I’d need to take.
Talking to a professional sounds like a smart idea.
Fwiw I've done contract work and I didn't need to be a sole proprietor or an LLC or a passthrough or anything, they just 1099'd me and I paid my own quarterly estimated taxes to the federal govt and my state of residence. I have seen places where you need to be an LLC and submit bids and all that, but that was company policy not a tax law.
Tax-wise, the instant you earn contracting income you are a sole proprietor. There is no additional step required.