I'll try to keep this short.
1. I am a NEW VA for a realtor that I know.
2. I've been working for him for a month now and have been paid a few times already.
3. We do not have a written contract yet (I'm working on it!!!)
4. I do not have an EIN (YET!)
5. He has not filled out any W9's

Here's my question. I know I will be reporting ALL the income from him and unfortunately I have not set up an official business yet nor have I even met with an accountant.

I'm feeling VERY VERY overwhelmed and I'd love to know what I should do now?
Should I get an EIN now even though we're 3 weeks into the 2nd Quarter?
Are my taxes going to be a complete nightmare??
Currently I plan to only have this one client, should I still start an LLC? About what will this cost me?

Sorry for all the questions. Thanks for all your help!!

Donna Marie:

Here are my thoughts

Should I get an EIN now even though we're 3 weeks into the 2nd Quarter?
I believe everyone who is doing business should get an EIN. Especially those sole proprietors so that you never have to give your SSN out to anyone. The process is simple and can be done online a IRS.gov.

Are my taxes going to be a complete nightmare??
Depends on your tax situation, which is different for everyone. I would consult an accountant or tax professional.

Currently I plan to only have this one client, should I still start an LLC? About what will this cost me?
The LLC costs differ from state to state and again each person is different. I operate as a sole with a DBA and this works for me. Here is a great article on the difference..LLC vs Sole Proprietor

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Lee Drozak
My Office Assistant

Lee gave you some great advice. The best I can add to it is that to minimize your tax nightmare (it doesn't have to be one) you should set up business bookkeeping that is SEPARATE from your personal bookkeeping. The IRS will still consider your biz money to be personal if you are a sole prop or a llc, but you CAN and SHOULD write off your biz expenses. The only way to do that properly is to set up business bookkeeping and track ALL expenses as well as income. Keep your receipts, etc. I have a 'small business taxes' brochure in the docs library on VAF that should help shed some light on your questions. (There's also a llc basics brochure that may be helpful to you, as well)

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"