With so many kinds of gig workers out there we get a lot of great questions about being an independent worker, running a company of one, taxes, and more.

This brief document includes the answers to the most common and what we think are the most important ones so far. If you have any questions that you don’t see answered here please email us at: info@associationforgigworkers.com

Doctegrity Tele-Health program – online or telephone access to real doctors and mental health professionals for you and your family. An incredible benefit, especially if you don’t have health insurance.  

Becoming a Limited Liability Corporation, or LLC offers you the opportunity to separate your personal assets from your business operations

If your business is sued or a judgment bought against it for not paying a debt, for example, a proper LLC would prevent your home or personal accounts from being subject to seizure, etc. 

Whether you’re a sole proprietor – just doing business as YOU – or become an LLC, the income taxes you pay are the same.

A Trusted Advisor is a professional in a particular field that is both qualified and committed to helping Association Members. They are vetted by the Association and GigWorker Solutions Teams and commit time and resources to educate our members. 

For Gold Members, almost all of the content and courses produced by Trusted Advisors are included with membership. And many offer a free consultation for both Gold and regular members. But each of them offers products and services that are subject to charge.

For example, Mark Stephenson is a Marketing Trusted Advisor from ClientsFIRST Marketing. He offers a free consultation on any aspect of digital marketing for members for free but offers things like CRM, Web development, and Full Service Marketing for an additional charge.  

If you are a sole proprietor or an LLC you must file and pay what’s referred to as a self-employment tax. That’s divided up into 12.4% for social security and 2.9% for Medicare (IRS on Self-Employment Taxes) for a total of 15.5% of your net income

When you are a W-2 employee of a company, that company pays ½ as payroll tax of 7.65%, and your ½, 7.65%, is deducted from your check and shows up on your pay stub. 

You CAN do much of the paperwork yourself and save a few dollars. But our suggestion is that you either use an attorney OR our Trusted Partner; Northwest Registered Agent. They’ll do the paperwork for you for around $225. 

You don’t really change your company structure at all to become an SCorp, you simply fill out a form (IRS 2553) so you can file your taxes as one.

You save money on taxes because you no longer owe the self-employment tax of 15.3% of your business's net income, only on what you pay yourself as a salary

For a detailed explanation watch this video:

No! Side-hustlers, new solopreneurs, business startups are all welcome. This is a place for any gig, freelance, 1099, Schedule C filing business person.

Still Have Questions?