setting up a DBA for 1099 work?

I have a potential consulting/contracting opportunity, but it will require being paid via 1099. I've always worked as a contractor for out-sourcing firms on their W2 so this is new to me. Any help or advice would be appreciated. 

1. How do I set that up?

2. Do I need to increase my hourly rate to accommodate the quarterly tax payments I'll have to make? 


The_Soulful_Mr_T said:

I have a potential consulting/contracting opportunity, but it will require being paid via 1099. I've always worked as a contractor for out-sourcing firms on their W2 so this is new to me. Any help or advice would be appreciated. 

1. How do I set that up?

2. Do I need to increase my hourly rate to accommodate the quarterly tax payments I'll have to make? 

I believe that you need to set up a trade name at the county.  you should inquire if the paying company needs you to set up something  more formal ( LLC etc)  they need to justify why you are not an employee vs a contractor ( self employed)  you should increase the fee/rate because now you will owe both ends of social sec taxes (the part that the employer used to match).  you will need to save part of your money to make estimated tax payment to uncle sam & gov murphy.

being an employee is much easier


oots said:

The_Soulful_Mr_T said:

I have a potential consulting/contracting opportunity, but it will require being paid via 1099. I've always worked as a contractor for out-sourcing firms on their W2 so this is new to me. Any help or advice would be appreciated. 

1. How do I set that up?

2. Do I need to increase my hourly rate to accommodate the quarterly tax payments I'll have to make? 

I believe that you need to set up a trade name at the county.  you should inquire if the paying company needs you to set up something  more formal ( LLC etc)  they need to justify why you are not an employee vs a contractor ( self employed)  you should increase the fee/rate because now you will owe both ends of social sec taxes (the part that the employer used to match).  you will need to save part of your money to make estimated tax payment to uncle sam & gov murphy.

being an employee is much easier

Yes, being an employee is much easier, but I may not have a choice at this point. 


I don't think you have to set up a DBA just because you are getting paid on a 1099 basis. 


bub is right. No need to set up a DBA just because you're paid on a 1099 basis.

Since you have no choice however - W2 or 1099 - you may want to look into forming some type of corporate identity (check with an accountant) given the 2017 corporate tax bill that allows 1099 contractors "significant additional tax deductions from what is called a 20% pass-through deduction."  However, as you yourself noted you should increase your hourly rate given that you will now have the burden of paying the full 15.3 percent of medicare/social security taxes whereas as an employee you only pay half: 7.65%

I've had a position for the state that started out as a 1099 contractor. This was many years ago and I never had to do any DBA but as I said above, it's a good idea perhaps to do so given the pass-through deduction. I was hired to do the same stuff as a staff attorney did. Not sure how the state got away with that as I certainly could not do other work while I was hired to represent a state agency but they did. Fortunately I was eventually offered a position as a real staff attorney W-2 with all the state benefits. 



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