Transitioning from Full-time employee to contacting with same company as a 1099

C

Chasinglogos

Pigeon
Orthodox Catechumen
My company is wanting to transition me to a contractor vs being a full-time employee.
I'm working out the details next week. I'm not experienced with this. I don't have faith in this lasting very long based on the others I've seen go this route.
I haven't signed anything nor do I know what they have in store for me next week.
I'd love to hear other people's experiences with this sort of thing. I will be talking with people in my life to prepare but I was hoping to get pro tips from people that learned from thier mistakes or had success in this type of endeavor. God Bless and thank you for any info you share.
 
G

Gimlet

Pelican
I have done this for many years, and currently am a 1099. You can come out ahead; I for one hope to never go back to a paycheck.

Tips based few mistakes I made the first time around:

Go into your meeting knowing how much they pay you. That is your paycheck plus all benefits. Health insurance is very important - get quotes now to see what it will cost. Workman's comp, lie insurance etc all costs. Walk in with that number in your head so you are not negotiating from the wrong start point.

Consider the tax implications. For instance, can you have a dedicated work space at home so you can write off a portion of your mortgage/rent?
Mileage? Internet? How much can you write down your income? Imagine a work day at home, what will you do that costs $$?

Form a company and enter into this contract as the company, not you. This is important for liability issues, and also your company will pay you via your business account. What you pay yourself vs leave in that account can help you with your personal tax liabilities. You can form an LLC very quickly. (I have an S Corp though, on advice of accountants, even though it started as an LLC for the first year.)

I am no expert but I do have real experience so if you have any specific questions post them. Do your DD on what I and others write of course, but this should help you with where to look.
 
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