I have an offer to be a consultant on a DOE project. Payments will be made monthly, there will be no withholding. From what I understand I will be considered a 1099 employee. An independant contractor.
My question is this. Would I be at an advantage to form an LLC. Since I will require a vehicle, phone, laptop, as well as other incidentals. What would change if I incorporated vs just being a 1099 employee? I was thinking I could purchase those items with a corporate credit line and they would be property of the company.
Secondly. I am a resident of Florida where I lease an apartment however the jobsites will require long stays out of town, months at a time or possibly over a year. Can living expenses be deducted? Would I incorporate in the state I work or my home state. Its a bit confusing since there are multiple projects in 3 different states.
This is my first foray into consulting at the dollar level I am being offered. I have provided services in the past for $1000 for a visit to a project and simply added the 1099 income to my income tax return and its a bit intimidating with the tax implications and such. The last people I want to run afoul of is the IRS. I of course also want to give them as little of my money as I have to.