I'm getting ready to start a new job. Employer tells me I'm going to be 1099. After asking around a bit I find out that I'm going to be an independent contractor, they take no taxes out, I'm responsible for it. I'm sure there's more to it? I'm kind of skeptical and nervous about it, because I can see where I can get into some pretty hot water if I'm not careful, and quite frankly, I have no clue what I'm doing. Someone said I should start my own corporation and have my employer pay my corporation and then I pay myself through my corporation (sounds confusing to me). Then my employer begins rambling on about how great 1099 would be for me, how I can write everything off, a lot more than if I wasn't 1099. Said I can purchase a new vehicle, say it's for work and write off the entire purchase? $30,000 write off? Really?
Alright, my first questions are these:
1. Should I set up a corporation if I'm going to be 1099, or just have them pay me directly? (I don't know if amount made through my employer makes a difference in doing this, I should be making roughly 120k a year)
2. Can everything really be written off? Is there a list of things that can be written off somewhere? (I also work in a state different than the one I have residency in, if that means anything).
3. Should I hire an accountant to take care of financials for me, including taxes and such? Are accountants expensive?
I can still back out of the job, I have a few more days before I have to really commit, and I'm rather hesitant to take the job, mainly because the whole 1099 things worries me and I have no clue what the hell it means in the long run or what I'm doing and the owner just says "it's much better, trust me"