February 1st, 2004, 02:48 AM
Ok, myself and my design partner are totally new to consulting..... we are both fresh out of college and havent a clue of any legal issues involved with getting paid for web consultation.
First off, are there any tax related issues that we should be aware of before we get totally screwed. Do we both just need to fill out a 1099 when tax time comes, or are we supposed to pay taxes from paycheck to paycheck?
Second, for just web consultation, do we need to get any sort of business registration or anything? Or this is only if we form a partnership?
Third, what are the benefits of forming a partnership?
If anyone has places where I can go or people who I can meet with who can help us get set up properly, please let me know any URLs or phone numbers that I would need. We both currently reside in the California Bay Area.
I really appreciate any light that anyone can shed on this subject.
February 4th, 2004, 09:37 PM
You should keep some money separate when you get paid. This would be similar to paying taxes on every paycheck. That way at the end of the year, you do not have to borrow money to pay your taxes.
You should form some type of a partnership. In case one party leaves or if something happens, the other party has some type of control. It can be a simple (?) legal document. You might be best friends for 15 years but being in business together is different.
Not too certain about the benefits, but you do get some - small business administration (http://www.sba.gov/) would be one place to start.
You can get a little information here on Benefits of Forming a Corporation