Do I need an LLC to do work for a contractor and get paid on a 1099?

Asked on August 25, 2015 under Business Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

No, you just need, in the eyes of the law, to truly be an independent contractor and not an employee employees are paid on a W-2 and have taxes withheld if you are an independent contractor, then you can be paid on a 1099. You can find the criteria for when you are an independent contractor vs. an employee on the U.S. Department of Labor website. Again an individual can be paid on a 1099 under the law though if you do not have an LLC and an employer identification, or EIN number also called a tax ID number, you will have to furnish your social security number for the 1099.
However, the contractor you wish to work for could choose to only hire LLCs, not individuals, to do work that is, while it would be legal for them to hire an individual independent contractor and pay him/her via 1099, they are not required to do that, and could insist, if they wanted, than anyone who does work for them have an LLC.


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