I currently work as a 1099 consultant and want to take this to the next level and want to create a web site and start marketing my services more then just word of mouth.

My question is do you need to get an ein number or can you continue working as a 1099 with your own site?

thanks

A 1099 is just a form that companies issue to non-employee contractors for services provided reflecting the total revenues paid. Even if you set-up a business you will still receive 1099's, unless you are a corporation. Corporations are the only entities exempt from receiving 1099's. If you are an LLC or sole-p, you will still receive them.

If you are a sole-p you do not need an EIN unless you plan to have employees. If you are a LLC or corporation you will apply for an EIN as a new business whether you have employees or not.

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Rebecka Melson ~ Virtual Business Services

Hi

Thanks for the info. So do i need to file anything if i am the only one with no employees?

sorry new here and trying to learn the ropes. I live in an area that once you file your business name you get slammed with taxes. I was wondering if i just keep going as i am as a 1099 and launch a site if i need to do anything else. (besides registering a name and marketing)

If you plan to do business as a sole-p under your name, then no, you don't need to file anything. If you want to work as a sole-p but under an assumed business name, then you will need to file a "fictitous name", "assumed named" or dba with your State (each State has a different title).

You can also opt to become a single-member LLC, in which you would have to file as a Limited Liability Company with your State. As a single-member LLC you would file your taxes exactly the same as you are now, you would just have added liability protection against being sued.

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Rebecka Melson ~ Virtual Business Services

Thank you for the information it helps. May i ask what the general rule of thumb is on this? Is it likely one could be sued?

I don't know that it is likely that you would be sued, but in today's sue-happy world it's always a good idea to protect yourself. Also, there are a lot of scammers out there and as VA's we work with people without really knowing them or their true identity.

I think the type of protection you should have depends on the services you provide and what type of risk category it puts you in.

I provide bookkeeping so I am at a higher risk because I deal with highly confidential and sensitive information. For instance: I provided a financial statement to a client which they send to their bank for purposes of getting a loan. The bank issued the loan and then determined I made an error on the financial statement which erroneously caused them to think the client made more money than they actually did. The bank recalls the loan or causes it to mature early. The client could sue me for damages due to the hardship my mistake created.

Nothing like that has ever happened, but everyone makes mistakes so I need to protect myself against the "what if". Having an LLC means that the most the client could sue me for was the amount of assets I had in the business, they couldn't take my home or other personal assets. I also have errors & omissions insurance for this purpose as well.

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Rebecka Melson ~ Virtual Business Services