Considering becoming 1099 Contractor

What is the name of your state? Michigan

I am a W2 Computer contractor with the City of Detroit. They are SERIOUSLY cutting the budget and even though I am needed by the department I work for I may loose my job. Over and above that I have taken 2 pay cuts the last being 10% of the Billing Rate which was totally passed on to us. I have finally seen the handwritting on the wall and started looking for a new job about a month ago.

Most of the serious contacts I am receiving for new positions are for 1099 positions. Most are not in Michigan. I have done research. I know if I go that route I am responsible for paying my own taxes (Local, ST, Fed, SS, UI, WC and other statute required) on the appropriate schedule to avoid penalties. Benefits are also my own responsibility. Are there any other requirements I need to consider? Do I need a DBA or LLC? I need to decide how to proceed and what billing rate to charge to be able to function.

Thank you for any help you can offer.

i hope i can help

in pa i was a sub contractor and was 1099 att he end of the year. it's really not a big deal. you dont need any special licences or anything. you just want to act like you work for yourself..in the aspect of expenses. you will need to keep track of mileage, supplies, any equiptment you need..if you have to buy big ticket items or large machinery you can claim a portion of them for a few years in a row claiming depreciation on them. the people you do work for will pay you in check the total amount with no taxes with held and it will be your responsability to pay your own taxes at the end of the year. the more things you can deduct the better you will be. also if you use a portion of your home for work..like you do your paperwork in a home office you can deduct a portion of your home. remember your cell phone is a deduction if you will be using it for business. i hope this helped.