working 1099?

[Anonymous]

I have a opportunity to work as a implant rep but 1099 status. Seems like a good product, high producing territory, but 1099 is new to me. Can 1099 be a good thing? likely to be audited? any advice or experiences would be great

 

[Anonymous]

I have a opportunity to work as a implant rep but 1099 status. Seems like a good product, high producing territory, but 1099 is new to me. Can 1099 be a good thing? likely to be audited? any advice or experiences would be great

Yes indeed, it's the cat's meow.

As a 1099, there is no ceiling on the amount you can earn. Suggest you set up an LLC or corporation for yourself, as it makes accounting easier when tax time comes. Your LLC or corp is paid by implant company, not you personally.

The LLC or corp tax structure allows it to purchase and/or pay for company car for president, as well as all work related expenses. This reduces audit exposure. The LLC or corp pays the president (you) a salary, which ensures you pay into SS, Medicare, etc., and also can set up a pension plan with the LLC or corp paying majority of percentage paid into pension plan, and with employee (you) paying tiny percentage.

Also, LLC or corp can suffer losses for years, and avail itself of loss carryovers when profitable, for years down-the-road.

If you choose not to set up an LLC or corp, set aside 35% - 40% of amount paid to ensure no surprises 4/15 of each year.

As a 1099, you are your own boss.

 

[Anonymous]

Yes indeed, it's the cat's meow.

As a 1099, there is no ceiling on the amount you can earn. Suggest you set up an LLC or corporation for yourself, as it makes accounting easier when tax time comes. Your LLC or corp is paid by implant company, not you personally.

The LLC or corp tax structure allows it to purchase and/or pay for company car for president, as well as all work related expenses. This reduces audit exposure. The LLC or corp pays the president (you) a salary, which ensures you pay into SS, Medicare, etc., and also can set up a pension plan with the LLC or corp paying majority of percentage paid into pension plan, and with employee (you) paying tiny percentage.

Also, LLC or corp can suffer losses for years, and avail itself of loss carryovers when profitable, for years down-the-road.

If you choose not to set up an LLC or corp, set aside 35% - 40% of amount paid to ensure no surprises 4/15 of each year.

As a 1099, you are your own boss.

You are forgetting that to do all the above one must be bringing in a ton of money to pay themselves a salary, buy a car, etc... Implant company does very little which is why they hired you as a 1099 and not direct. Yes there are tax benefits but you need the cash to get there.

 

[Anonymous]

I am a 1099 rep and love it. I carry 17 different lines and have 2 cover reps. I have been audited twice in the last 4 years but now a full blown audit IRS just wanted concrete evidence for deductions/expenses. My expenses are over $200k/year with my associates salary. Make sure you lock in a contact or they can pull your lines away any time without recourse.

 

[Anonymous]

SSSHHHH don't tell every one. Others don't have a clue how much money is to be earned as a Independent

 

[Anonymous]

seems like 1099 is not a bad option. The opportunity im looking at includes a small non recoverable draw and a health insurance stipend. It is all about deductions and protecting yourself. Seems that even big companies prefer the 1099 route'

 

[Anonymous]

no money in 1099....COOK is the way to go.