I set up a business entity for the sole purpose of taking advantage of awesome tax write offs as a contractor.
First, you'll need to register your business in a state. Generally most businesses use Nevada or Delaware. You're welcome to do this in your home state, but you need to be aware of any fees and taxes that may ding you. Which takes me to my next point:
You will also need to find a reputable tax accountant. Someone who you can ring up for advice and also prepare your papers when the time comes.
Finally, yes I also recommend you find a small business attorney to help you draft up a simple terms of service agreement. Not all TOSes are alike and it's important you get the right coverage for yourself. Otherwise you open yourself up to some liabilities which can financially ruin you.
The best part about all of this is the fact that business expenses are a tax write off! Make sure you keep all receipts (digitize them) and properly record the expenses in a spreadsheet. I use Google apps for this.
Good luck!
First, you'll need to register your business in a state. Generally most businesses use Nevada or Delaware. You're welcome to do this in your home state, but you need to be aware of any fees and taxes that may ding you. Which takes me to my next point:
You will also need to find a reputable tax accountant. Someone who you can ring up for advice and also prepare your papers when the time comes.
Finally, yes I also recommend you find a small business attorney to help you draft up a simple terms of service agreement. Not all TOSes are alike and it's important you get the right coverage for yourself. Otherwise you open yourself up to some liabilities which can financially ruin you.
The best part about all of this is the fact that business expenses are a tax write off! Make sure you keep all receipts (digitize them) and properly record the expenses in a spreadsheet. I use Google apps for this.
Good luck!