Re: Incorporation Blues

Subject: Re: Incorporation Blues
From: "David B. Demyan" <dbdemyan -at- WORLDNET -dot- ATT -dot- NET>
Date: Tue, 11 Feb 1997 14:23:51 -0500

Dana B. Mackonis wrote:
--snip--
> I just incorporated my business and am runnng into problems big time
> with getting work now. First let me explain that I write primarily
> technical manuals, courses, etc. for high tech companies. I get
> 90% of my contracts thru agencies. The agencies will pay you on a
> W2 basis or on a 1099 if you have a Tax-ID or are a corporation.
> I am now finding that many of the agencies have revised their
> bookkeeping and will only pay a valid corporation
> on a 1099 basis if that company has more than 2 employees.
>
> This is discrimination as far as I can see.

--snip--

Ahhh, the good ol' days.... Used to be, we could incorporate to save
ourselves big bucks in taxes and still work thru agencies. The
thinking was, hey, if I'm incorporated, I can write off all kinds
of business expenses and still get paid an hourly wage that is
higher than captive employees earn. You are right, Dana, this is
discrimination, but the culprit is uncle sam, not the agency. They
are just passing along the _new_ reality of the tax law. [I won't
get into a discussion of that now; it has been thoroughly hashed in
the past on this list and lives in the archives.]

The point is, in its infinite wisdom, our government on one hand
encourages small business, at least they say they do. On the other,
they do everything they can to punish the small business person
(one or two individuals trying to make a living) by making the
tax code so restrictive that neither agencies nor end-clients will
attempt to deal directly with them.

Go figure...

Dave.


......................................................................
David B. Demyan Mendem Concord, Inc.
Toll Free: (888) 753-8500 Technical Writers
FAX: (908) 756-0129 Document Conversions
dbd -at- mendem -dot- com http://www.mendem.com
......................................................................

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