becoming incorporated
Posted By: Eileen on 2008-02-04
In Reply to:
I wonder if anybody knows if you have someone else working for you, do you have to become incorporated and open up a commercial bank account and to file a 1099. I am really dumb, I have never done this before, but I have so much work and I am considering hiring someone perhaps in my church. Can someone put some light on this, please. I appreciate it.
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are you incorporated?
If you are incorporated, the corporate veil should be enough to shield YOUR assets. Is the idea to protect yourself or what is the insurance supposed to be protecting? That's the idea of insurance, to protect assets, so I guess I would have to ask "them" what is supposed to be protected. I just generally told clients that MT work carries such little liability that very very few MTSO carry insurance. We always just lined it out of contracts and signed off on it.
Are you incorporated? How did you come up with a name? sm
I was advised by an attorney I hired, for something not related to MT, to incorporate. It may not matter, or perhaps it will, I don't know what name to give my "company." Any ideas? I'm currently very happily subcontracted with an MTSO and have no plans of making any changes but never say never... Thanks for your ideas.
You don't have to be incorporated.
I would suggest that you consider going the route of using a subcontractor rather than IC. You become responsible for many things when you're an employer and if you can avoid it, you should. You will be pay 1/2 the employee's SS tax, and will be responsible for withholding and submitting Federal, state and local taxes, among other things like Unemployment (some states mandate it).
Subcontractors are responsible for their own taxes; you simply send them a 1099 for earnings over $600. You can use your own SS# as well.
I would advise going the subcontractor route if there is any chance that the workload may fluctuate or dry up since you may be faced with a decision about lay-off as well.
Incorporated
I have been incorporated for years. I worked independent for years as well and got a new accountant and was told by incorporating I would save a lot in self-employment taxes and she is right. Every year I save at least a couple of thousand dollars in self-employment taxes.
Has anybody here incorporated?
I never did. In Missouri if you use your own name you do not have to register with the state. If you use a fictitious name, you must be resistered. The last few years I have not made enough money for me to warrant the expense I don't think. I will be interested in following this link though.
Has anybody here incorporated? sm
I'm told it would give me a tax break. I'm currently working as an IC. Is this expensive to do? Do you need a business name to do this? Can this be done online?
Any info would be greatly appreciated.
Are any IC Incorporated since they are self-employed?
Just wondering if any IC out there have set themselves up as a Corporation. Being tax illiterate, it seems like I do not have many deductions when it comes time to file. My DH is looking into opening a business to provide a service and someone with a similar service suggested to him to file for corporation to be able to receive more tax benefits and deductions. My CPA over the last 10 years has never suggested it to me even though I ask him what I could I do for more deductions. Is this possible?
Mumblers incorporated!
Do you sometimes get the impression that the docs think that one and only one person is transcribing their notes and that person is completely familiar iwth the mumbles?
i have given up to leaving blanks. Maybe it's the only way they'll learn but I'm not guessing at what they're saying. They all should be taught that the transcription is only as good as the dictation.
Generally don't complain but EVERY doc I've had so far has had a severe case of the mumbles!
There are keyboards that have a touch pad incorporated
in them. I think I've seen them with a tracker ball too.
I incorporated but only after making over 50K year
IC's risk being considered an employee if they work only for one company. I had a friend with an MTSO that the IRS went after because some of her MT's worked only for her.
Incorporation was a benefit to me because my business was making money, yet I was paying self-employment taxes on what my business was making. For example, if I have 3 IC's working for me, who bring in $40,000 per year, that is what my BUSINESS is earning, not me and therefore I should not be paying self-employment taxes on my business earnings. So I incorporated, paid myself a small salary for running the business on which I DO pay self-employment tax, and took the rest of the earnings as an S corp. They go right through to my personal taxes but I save the 15% SS tax, which as you can see on 40K, saves me $6 grand per year right there. Also enjoy 401K contributions from my corp, and increased deduction for health insurance.
would not recommend incorporating if making less than 50K per year with a business as there are increased fees and corp taxes too.
Regarding the prior post who said "For insurance, for professional liability insurance, I was told that you have to be incorporated. I don't have a problem with this. If I hired someone to build an addition for me, I would want him/her to have insurance. Why should medical records be any different?"
Medical records are different because the MT carries essentially zero liability. Insurance insures against lawsuits. MT's lawsuits are nearly nonexistent. Many, many, MANY MT's do not carry professional liability insurance. The analogy of a construction company putting on an addition is not equivalent to the MT situation. It would be like asking if your neighbor carries liability insurance against your contractor. Why would your neighbor carry insurance on your contractor if they have no liability? Exactly.
Oracle Transcription Incorporated, Rockville, MD
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