How do you manage your 1099 pay?
I know this won't apply to a lot of you seeing that many of you are likely W2 employees.
I just started a position with a middle markets brokerage on their Capital Markets team. Right now I am in a supportive role of some of the top producers at the company. My main responsibilities are to help in the structuring of senior debt and raise equity for GP's as needed.
The reason for my post, I am currently paid a small salary and share in some of the commission for deals that I work on. However, I am paid as a 1099 employee.
Since I am "Self-employed" I was curious to know if it is advantageous to set up an LLC and operate as a business - seeing this gives me the greatest ability to write some expenses off. I will likely make 80k-ish a year in this position before I take on a role as a full-time producer.
I by no means am a personal accountant and don't have much experience with personal tax law. For this reason I am coming to you - asking some advice on best practices and things I can do now to set myself up for success in the future.
Thx in advance!
Why don’t you ummmmm you know….talk to a CPA?
Just having an LLC does not change your ability to deduct business expenses.
A single member LLC is still a sole proprietorship from the IRS point of view, so nothing gained by just an LLC (there is some special deals people do with Sub-S corp filings, but totally need CPA to set that up and figure out, and need enough income to make worthwhile).
The big thing you should do now, is categorize all your expenses/charges (and hopefully you run all through CC) that could be business expenses (watch some youtube videos on this). You may need professional help filing your taxes with a schedule C, but if you didn't keep the records they can't help you minimize your tax bill.
Great, thanks for the info. I have made sure to keep a record of all of my business expenses, so that should help. As far as a CPA goes, do you have any recommendations on how to find a good CPA? I know that there are a lot of them out there and some are likely better than others.
Again, thanks for any information in advance!
You need to buy a piece of real estate and have a cost segregation study done on it. Trust me.
+1
Why are you a 1099 employee? Do you get benefits? This seems really abnormal
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