The IRS test for classifying workers, plus what a 1099 filing actually requires of you as the payer.
In plain terms: This official IRS guide explains the rules for determining whether a worker is an independent contractor or an employee. Use it to understand tax obligations, classify workers correctly, or find forms to report a misclassification.
Why I recommend it: Misclassifying a worker is one of the most expensive small mistakes a new owner can make. Read this before you pay anyone.
Forming an LLC or S-Corp for Your Tech Business or Consulting Practice
A step-by-step guide to forming an LLC (name search, registered agent, state filing, operating agreement, free EIN, business banking) and electing S-corp tax status, with filing fees and direct portal links for NY, NJ, GA, and CA, plus a section on 1099 contractor and consulting taxes.
In plain terms: This guide explains how to set up an LLC or elect S-corp tax status for freelance and consulting work. You can use it to register your business, get a free tax ID, and understand your self-employment taxes.
Why I recommend it: Most consultants should start as a plain LLC and only add the S-corp election once net profit is consistently past roughly $50-80K. Get the free EIN yourself — never pay for it.
