Re: 1099 vs Incorporation Pros &* Cons

Subject: Re: 1099 vs Incorporation Pros &* Cons
From: "Herman Holtz" <h -dot- holtz -at- worldnet -dot- att -dot- net>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Thu, 11 Jan 2001 13:34:06 -0500

Perhaps most readers here are not aware that in most states today
incorporating yourself is a simple and easy task, rarely involving more than
one or two pages of forms. You can normally buy a seal, forms for shares,
and whatever else you need to set up as a corporation for less than $100. -
Herm



> What you may be running into is a general level of misunderstanding among
> > employers and agencies about the real differences between being
incorporated
> > and being a 1099 contractor. In both cases, the employing company has
to
> > report a tax ID when it pays you: if you're a corporation, they report
your
> > corporate tax ID, if you're a 1099 contractor, they report your Social
Security
> > number.
>
> Since you don't have to be incorporated to obtain an employer ID
> number from the government, and you should have one even if you
> are the only employee of your company. Couldn't you just apply for
> the EIN, use it, and not worry with incorporating?
>
>
> Nara Malone
info.





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