What is the name of your state? Idaho
Hello,
I have a question and I hope someone can answer me. For the last 3 years I have been a contractor for the same company and about 1.5 years ago my spouse also became a contractor for the same company. When we started with this company we were contracted in the following feilds (Sales, clerical, design, minor accounting etc) the company has now since grown and we are starting to make some good income.
Now I have been required to work specific hours everyday and also set days of the week for the last 3 years and have gotton paid per hour. Which I know there is a fine line between contractor and employee. The company that I am contracted with does not want to put any of their contractors into the employee category (tax reasons). I really love working with the company we are contracted with and it is a new and growing company with good furture possibilites. (hopefully)
The Company I am contracted for suggested to me to start up a LLC in our own company name and then just bill them for services we do for them etc. I believe (so we have been told) we can get certain tax breaks for doing this (forming an LLC) and it would be much easier to track/claim our expenses. The company we are currently contracted with says they will pay for half of the expenses to get our LLC.
If anyone could tell me the PRO's and CON's in their opinion between being a "contractor" and forming an "LLC" I would be very grateful! Is there anything I should be cautious about etc.
Thank you so much!
Ms. Edmonds
Hello,
I have a question and I hope someone can answer me. For the last 3 years I have been a contractor for the same company and about 1.5 years ago my spouse also became a contractor for the same company. When we started with this company we were contracted in the following feilds (Sales, clerical, design, minor accounting etc) the company has now since grown and we are starting to make some good income.
Now I have been required to work specific hours everyday and also set days of the week for the last 3 years and have gotton paid per hour. Which I know there is a fine line between contractor and employee. The company that I am contracted with does not want to put any of their contractors into the employee category (tax reasons). I really love working with the company we are contracted with and it is a new and growing company with good furture possibilites. (hopefully)
The Company I am contracted for suggested to me to start up a LLC in our own company name and then just bill them for services we do for them etc. I believe (so we have been told) we can get certain tax breaks for doing this (forming an LLC) and it would be much easier to track/claim our expenses. The company we are currently contracted with says they will pay for half of the expenses to get our LLC.
If anyone could tell me the PRO's and CON's in their opinion between being a "contractor" and forming an "LLC" I would be very grateful! Is there anything I should be cautious about etc.
Thank you so much!
Ms. Edmonds