Today’s Smart Money Question:
(Click the featured times below to jump forward in the episode)
Here Are Just A Handful Of Things You’ll Learn:
As different areas of the country start to open up the office again, you may be approached about being a consultant. What should you know ahead of time?
Are you ready to make the jump from being a W-2 employee to 1099 independent contractor? What kind of taxes will you pay and how much can you write off? Before you make your decision, be sure you are aware of the differences instead of facing a massive wake-up call come tax time.
Whether this comes as an opportunity or is a side hustle you’ve decided to pursue as a result of the economy following coronavirus, find out how you will be paid. This will change everything from what you deduct in your taxes and what materials you are expected to cover. Will you work with your own hours or are you expected in the office at a set time? Is it worth setting up an LLC or corporation? What kind of liability will be you subjected to? Before you sign the dotted line too soon, make sure you understand the ins and outs of what you about to embark on and whether or not it provides you the type of work you are wanting.
Lastly, Matt answers a question from the mailbag asking about setting up a trust. Why is a trust valuable? What kind of protection does it provide? Talking to an estate attorney can help determine if it makes sense for you.
Listen to the entire episode for an in-depth look at what you should know ahead of time when it comes to consulting work or click on the timestamps below to hear a specific segment.
0:30 – Matt shares his excitement for the hope of reopening when the time comes.
1:40 – What would it look like to come back to work as a consultant?
5:17 – Does it make sense to go from being retired to becoming a consultant?
6:31 – What expenses will you incur?
8:03 – What kind of expenses could be considered a write-off?
9:04 – How will you be paid?
10:09 – Does it make sense to set up an LLC or corporation?
11:47 – What kind of liability are you subjected to?
15:04 – Mailbag: Is it wise to have a trust as a part of a financial and estate plan?
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The host: Matt Hausman – Contact – Resources – Call: 610-719-3003
