Your Own Business, Part II: Orders of Beasts in The Work World-W2’s and 1099’s


caballero8Last time, we were talking about your personal, specific “reason why” after making the decision to “start up” or begin hatching a creature never seen om earth before–your new business. By the way, there are websites especially to help hatch and nurture start-ups including the one here: “Start Up Nation” 

There are many configurations of businesses. I am referring basically to the situation in the USA. A job seeker may harken to some advice to take the path of Independent contracting-consulting or the “1099 path”. This means whoever temporarily employs your consult is not responsible for paying you anything else other than what your agreed upon consultation contract includes.You have responsibility to provide your own benefits. Oh, no! Promises should never be made nor the handshake given merely on the spoken word. Better that a contract spelling out specifically the responsibilities of each party in the agreement be passed and signed.

Of course, I am naming these economic based relationships by the form used by the IRS to declare income .You see, in the world of work, people are either companies, employees,  or consultants/aka Independent Contractors. Employees are W2’s. They do a specific, described job for a corporation for a long term.  Employees are like spouses in the work world. Independent consultants are 1099’s. In contrast, independent contractors/consultants sell their services for a fee, are  not employees of the firm served and  only obligated to that company for the life of that specific project or job. Independent consultants are more like gypsy courtesans. They are specialists who are actually in business for themselves.

Some people actually uncover their next employment opportunity while doing 1099 contracting. They decide to “get married” and “take the name” of the company (Hi! I’m an accountant at XXX corporation). Independent contracting/consulting is an acquired taste, but some job seekers who discover it begin to  like the spiky taste of this lifestyle so much that being an employee and staying in one company for days of years begins to look like a glass of plain tap water in comparison to Long Island Ice Tea. Got the spirit of a gambler? Don’t mind ambivalence? Becoming a 1099 independent contractor might be just the thing.

 

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