Welcome to 1099contracting.com! If you have found this website, then you are probably considering jumping into the world of independent contracting (or you already have - in which case, congrats!). Back in 2011, when I was considering leaving my full-time W2 job in favor of contracting, I heard all sorts of objections from friends and colleagues. Some of the biggest were:
- Won't you have to pay your own taxes?
- Don't self-employed people pay higher taxes?
- What will you do without your company's retirement plan?
- How will you get health insurance?
I considered these concerns, but the money to be made as a contractor was just too tempting. I decided to give it a try, and I hoped I would be able to figure out answers to these questions as I went along. I began by researching business structures, retirement options for self-employed individuals, and expenses and deductions. I read books and blogs, talked with tax advisers, compared strategies with other contractors, and even found that the IRS is more than willing to discuss tax questions with individuals (seriously, give them a call sometime!).
Over the course of several years of researching, implementing strategies, and tweaking those strategies, I've discovered a world of wealth and freedom that I would never have been able to obtain as a full-time W2 employee. For example, did you know that a self-employed individual can save up to 3x as much money in a pre-tax retirement account as a full-time employee? Or that as a contractor you can actually pay less in taxes than a full-time employee when you factor in deductions and expenses?
My only complaint up until this point is that there has been no single source to find all of the information I was seeking. My plan with this website is to organize all of information I have found and share it with the masses, and I will try to provide links to sources where applicable. Please keep in mind that I am neither an accountant nor an attorney - I work as an IT consultant. I'm confident that you will be able to navigate the ins and outs of independent contracting on your own, but it is important that you perform due diligence when tackling complicated tax and legal issues.
Do you have any questions for me? Is there anything you would like to see added to this site? Send me a message and let's start a conversation.
Happy Contracting!
Jim Roberts