[RTC List] 1099 contractor experiences/resources?

[Dave Thewlis]

Kate Trower wrote:
> I find myself taking a crash-course in 1099 employment.  If anyone on 
> the list is currently operating under a 1099 or has in the past, I 
> would love to pick your brain about how you have made it work for you 
> in Humboldt.
Kate, I have some 1099 experience but I am not entirely sure it would be 
helpful.  I wanted to do consulting work for some large firms (Sun, IBM, 
etc.) and found that they would not directly hire consultants (or 
contractors) directly because of the fairly complicated rules around 
whether someone was "really" a contractor as opposed to a stealth 
employee w/o benefits.   For two or three years I was operating under a 
1099 relationship with an intermediate corporation in Florida. 

Eventually what I wound up doing was incorporating, as the large 
companies had no problem with establishing an agreement with a corporate 
entity but would not do that with individuals.  So my corporation (an S 
corporation) was able to offer my services as a consultant and actually 
even helped one or two other consultants in similar situations.

The "corporate veil" meant that the 1099 relationship was between my 
company and me (or my company and another consultant) if investigated, 
and NOT between my company and IBM (for example), whereas if I had been 
directly engaged it would have been, and the burden of showing a 
legitimate relationship would have been on them.

The corporate identity, even as an S corp, has also made things like 
expense reports and receipts much easier for the prime, which is also 
appreciated. 

Dave Thewlis
>
> Happy Holidays,
>
> Kate Trower
> 408-470-9428
> kate.trower at yahoo.com
>
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-- 
*Dave Thewlis, DCTA Inc.*
+1 707 840 9391 (voice) · +1 707 498 2238 (mobile)
http://www.dcta.com · dthewlis at dcta.com <mailto:dthewlis at dcta.com>
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