• How to Order 1099-MISC Forms (free!)

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Not sure if you need 1099-MISC forms?  Read about them here.

When:  Order in Nov or Dec
Forms Due:  January 31
Estimated Time:  3 minutes
Cost:  Free
Frustration Factor:  1 out of 10

If you plan to use paper 1099-MISC forms (1099s for short), you'll need to order them from IRS.gov.  It's not possible to simply print them off ... because they are carbon forms. 

Here are the steps.  There are screenshots are below.

1.  Go to IRS.gov
2.  Select "Forms & Publications" ~ Top right side
3.  Select "Order Forms and Pubs" ~ Left side
4.  Select "Online Ordering for Information Returns and Employer Returns"
5.  Scroll Down to see chart of forms
6.  Notice there are two empty boxes for each form ~ one is for 2017 forms, the other is for 2018 forms
7.  Keep scrolling until you see 1099-MISC
8.  Put the desired number of forms that you need in the left box, for 2017 forms
9.  Put a number 1 next to the Instructions
10.  Scroll down to the bottom and select "Add to Cart"
11.  Follow the checkout process

The first picture starts on the "Order Forms and Pubs" page.

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The Chart of Forms - The actual chart is longer than what's shown here.

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The beginning of the checkout process.

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To read about 1099s + w-9s, click here.  (Coming soon.)
Need help filling out your 1099s?  Click here.  (Coming soon.)

Great job staying on top of things for tax season!

♥ Jenny Girl Friday

Would you like to receive friendly reminders for tax season ... delivered right to your inbox?  Sign up for Sidekick Services!  Asking for a small annual donation.

• What are 1099s? Do they apply to me?

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Whenever people are getting paid, or earning money, the IRS wants to know about it!  

They have created a variety of forms to do just that.  Just like a w-2 form is used to track an employee paycheck, 1099s are used to report other kinds of income.

Most often, when people say 1099, they are referring to a 1099-MISC  

This refers to miscellaneous income—which is any time someone is paid for a service, and they are NOT an employee.  For example, let's say Molly starts to teach yoga at her neighborhood studio, just one time a week.  They pay her for each class, but do NOT hire her as an employee.  At the end of the year, they would report all her earnings on a 1099-MISC.

As a self-employed person, it's common to both give and receive 1099s

For example, if you hire a photographer to do headshots for your website, or a designer to create a logo for you, or a bookkeeper to help you out, you'd likely have to give them 1099-MISCs at the end of the year.  (More on criteria below.)

If you provide a service to someone or a business, then you would receive a 1099-MISC, if you meet the criteria.

[Note ~ 1099-MISCs have a partner form, the w-9.  It's used to get someone's tax id number, either their social security number or employee identification number.  Read more about w-9s here.  (Coming soon.)]

The term 1099 + how the cool kids use it

It's important to know that there are a variety of 1099 forms, all with different suffixes and different purposes.  For example, you might have gotten a 1099-INT from your bank.  The INT refers to interest.  Also, sometimes people use the term as a verb or adjective, as in – Did you have to 1099 him?  Or, is it a 1099 job?  I think this is part of being the cool kids, but I could be mistaken...  ;)

Criteria, or, when to involve a 1099-MISC

For our purposes, we involve a 1099-MISC when...

- An independent contractor...
- Earns over $600 in one year...
- For service work.

To read about more situations, click here to read about 1099-MISCs on the irs.gov site.

Any time an individual—who's not an employee—is paid for a service, they are considered an independent contractors (IC).  Sole proprietors and single-member LLCs are both considered ICs.  It can also be a person without a business license, such as a neighborhood teen who mows your lawn all year round.

Some things to know ~

• You can order the 1099-MISC forms from the IRS for free, or you can purchase at office supply stores.

• Order or purchase these early!  They can run out.  Add to your November or early December calendar.

• If you fill out by hand, they will be carbon forms.

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• You must provide a copy to the Independent Contractor and to the IRS.  Currently, the due dates for these are the same. (Sometimes they vary.)
    - Copies due to the Independent Contractors January 31st.
    - Copies due to the IRS January 31st.

• 1099s are usually accompanied by a 1096 form.  The IRS will send this automatically to you if you order from them.  Do not be alarmed!  It is very simple, and acts like a cover letter.  You DO need to send it in, along with the 1099s.

More Help with 1099-MISCs

• To order 1099-MISCs from IRS.gov, click here.
• Click here to see a walkthrough of ordering. 
• 1099s have a partner, the w-9.  To read more on this, click here.  (Coming soon.)
• Meet the the 1096 form, like a cover page for 1099s.  (Coming soon.)

1099s are good things!

If you're receiving a 1099, it means you got paid for something in the last year!  If you're giving them out, it means you hired someone to help you or your business.  These are good things!  Whenever you're working with 1099s, it's nice to remember the experiences they represent.

Happy Working,

♥ Jenny Girl Friday

 

• How to Set Up Your Business in Seattle - as an LLC / PLLC

A Bigger Splash, David Hockney • Credit below.

A Bigger Splash, David Hockney • Credit below.

Setting up an LLC business doesn't take much time!  ….That is, if you know what to do, what you need, and the right order of steps.  Here's where I've got you covered.  

(Not sure if you want an LLC?  Read Sole Proprietor or LLC:  Which is Best for Me?)

Below is the quick and dirty list.  Detailed notes are at the bottom of the post.  

If you know your business name(s), the whole process takes about one hour.

Go ahead, take the plunge!

Pro Tip:  Get a journal to record all your log-ins, passwords, IDs, and various notes as you go through the process.  Use in the future for all research and calls related to taxes and licensing.  

1)  Register your LLC / PLLC.

Through:  the Washington Secretary of State
Click here to go directly to registration.
Cost:  $200
Time:  10 minutes

2) Pause + wait for your UBI

You'll need your UBI to go on to the next steps.  (Unified Business Identifier.) It's a lot like your social security number, in that it's a tax ID number assigned to you ... and banks and other organizations will ask for it to identify you.  It'll be provided along with your LLC documents.  Most often, it's in a 9 digit format.  Sometimes it'll be in a 16 digit format, where there are 0s and 1s at the end, noting your "business ID" and "location ID".

3) Apply for your state business license.

Through:  Washington State Business Licensing Service (BLS)
Uses MyDOR portal.
Click here to go to read more information on the BLS.WA.gov site
Cost:  $19 plus $5 for each DBA
Time:  15 - 20 minutes

4) Apply for your city business license.

Through:  City of Seattle Business Department
Uses the FileLocal Portal.
Click here to read more on the city’s website
Cost:  $113 for standard, $56 if you plan to gross under $20K per year.
Time:  15 - 20 minutes

That's it!  You're in business.  …but you're not quite done.  To be legal, you need to ensure that you have all of the special permits and licenses for your line of business. 

5) Optional ~ Apply for an EIN

EIN stands for Employer Identification Number.  It's a tax ID number assigned to businesses by the IRS.  If you are a sole prop or a single-member LLC, you are allowed to use your SSN for business purposes.  Having said that, banks and online forms will often required you to have an EIN.  The issue is that the number formatting is different.  With your social security number, it looks like 000-00-0000.  With an EIN, it looks like 00-0000000. 

Good news!  It's easy, free, and only takes 10 minutes.  Here's the link:  Get EIN on IRS.gov.  Or, go to IRS.gov and search for EIN.  Heads up, this web service is only available during the daytime.

6) Do your due diligence.

At the state level, check the List of Licenses 
This is a list by trade, with links to relevant licensing agencies.  
Here's the list of Endorsements required by some businesses.
Or, call the BLS:  1-800-451-7985

And, at the city level, check the Regulatory Endorsements page.
Or, call the City of Seattle:  206.684.2489

Another nice tool is the WA Business Hub.  It's created to walk anyone through the setting up a business.  There's a TON on there.

7) Celebrate!

* * Please note:  The intent of this post is to get you started!  And, to provide you with the required framework for every business.  Your field may require additional permitting or specialty licenses not covered here.  For best results, call the city or state.  

Happy Working,
Jenny Girl Friday

Some Helpful Details

With the LLC Registration

Some things you'll be asked:  
        • the legal name of your company
        • 2 alternate names
        • start date - day of filing, or a specific date
                              (Tip:  pick one that's easy to remember or has meaning for you.)
        • perpetual or specific time period

Mostly, you will have to put your name and address in a million times.  Because, as a single-member LLC, you are the member, the manager, the agent, and registrar.  You fill all the roles.

Even though you will be a limited liability company, LLCs are handled along with the corporations.  

For the State Business License

Some things you'll be asked:  
        • the UBI - you get this when your LLC goes through - it is your Unified Business Identifier
        • what bank you'll be using
        • your SSN and your partner's SSN
        • description of your business:  1- 2 sentences
        • trade name(s)
        • which cities you'll be doing business in (you need a license for each one)

For the City Business License

Some things you'll be asked:  
        • the UBI - you get this when your LLC goes through - it is your Unified Business Identifier
        • estimated income

• How to Set Up Your Business in Seattle - As a Sole Proprietor

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Opening a business as a sole proprietor is the quickest way to achieve lift off!  ….Because, there is no business entity to create.  In legal and tax terms, you and the business are the same.  You simply to need to apply for some licenses, and possibly some permits.

(Not sure if you want to be a sole proprietor?  Read Sole Proprietor or LLC:  Which is Best for Me?)

Making things official is a great way to build momentum.  I encourage you to get your licenses at any time!  You can work on the other things later.  

Let your dream take flight!  (Is that too many metaphors?)

Pro Tip:  Get a journal to record all your log-ins, passwords, IDs, and various notes as you go through the process.  Use in the future for all research and calls related to taxes and licensing. Read more in Make Your Life Easier! - Simple Tips For Keeping Track Of License And Tax Stuff

1) Apply for your state business license.

Through:  Washington State Business Licensing Service (BLS)
Uses MyDOR portal.
Click here to go to read more information on the BLS.WA.gov site
Cost:  $19 plus $5 for each DBA
Time:  15 - 20 minutes

2) Apply for your city business license.

Through:  City of Seattle Business Department
Uses the FileLocal Portal.
Click here to read more on the city’s website
Cost:  $113 for standard, $56 if you plan to gross under $20K per year.
Time:  15 - 20 minutes

That's it!  You're in business.  …but you're not quite done.  To be legal, you need to ensure that you have all of the special permits and licenses for your line of business. 

3) Optional ~ Apply for an EIN

EIN stands for Employer Identification Number.  It's a tax ID number assigned to businesses by the IRS.  If you are a sole prop or a single-member LLC, you are allowed to use your SSN for business purposes.  Having said that, banks and online forms will often required you to have an EIN.  The issue is that the number formatting is different.  With your social security number, it looks like 000-00-0000.  With an EIN, it looks like 00-0000000. 

Good news!  It's easy, free, and only takes 10 minutes.  Here's the link:  Get EIN on IRS.gov.  Or, go to IRS.gov and search for EIN.  Heads up, this web service is only available during the daytime.

4) Do your due diligence.

At the state level, check the List of Licenses 
This is a list by trade, with links to relevant licensing agencies.  
Here's the list of Endorsements required by some businesses.
Or, call the BLS:  1-800-451-7985

And, at the city level, check the Regulatory Endorsements page.
Or, call the City of Seattle:  206.684.2489

Another nice tool is the WA Business Hub.  It's created to walk anyone through the setting up a business.  There's a TON on there.

5) Celebrate!

 

* * Please note:  The intent of this post is to get you started!  And, to provide you with the required framework for every business.  Your field may require additional permitting or specialty licenses not covered here.  For best results, call the city or state, numbers above.  

Happy Working,
Jenny

Some Helpful Details

For the State Business License

Some things you'll be asked:  
        • what bank you'll be using
        • your SSN and your partner's SSN
        • description of your business:  1- 2 sentences
        • trade name(s)
        • which cities you'll be doing business in (you need a license for each one)

For the City Business License

Some things you'll be asked:  
        • the UBI - it is your Unified Business Identifier, you'll get this with your state license
        • estimated income
        • note:  your legal business name will be the same as your name, to get a different name, you need to by a DBA, doing business as, also called a trade name.  They are $5 each.

Photo Credit: Design for a Flying Machine by Leonardo da Vinci - http://www.drawingsofleonardo.org. Licensed under Public Domain via Wikimedia Commons 

• Make Your Life Easier! - Simple Tips for Keeping Track of License and Tax Stuff

Being self-employed includes answering to government agencies at every level:  city, county, state, and federal.  Sometimes it can feel a little crazy to manage all of the paperwork, dates, passwords, etc.

Here are a few tips for making your life a little easier.  The theme here is to make it very convenient to collect information and documents ... so that when you need them, you know where to look.  I don't know about you, but I'd rather rummage around when I need something, than spend time filing everything meticulously, just in case.  (Of course, if filing calms you, then go for it!)  

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1.  Choose a paper notebook

... that you love the look of ... and record all of your business numbers, logins, passwords in it.  I also like to list any phone numbers I've needed to call, and any notes from phone conversations.  

I like the paper notebook because it doesn't get lost like bits of paper, and, it can't be lost if my computer gets fried.

Numbers to be sure to add:
• UBI - Washington State Business Number
• EIN - Employer Identification Number (Not required, but recommended.)
• NAICS Code - North American Industry Classification System (Assigned to you by the state.)
• Seattle Customer Number
 

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2.  Find a box or basket

To collect all of your legal + tax paperwork.  Any time you get any thing from the government:  letters, licenses, updates, etc., throw them in there.  Put in a easy to reach place that feels secure.  Keep your notebook in there too. 

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3.  Create an email folder to collect all messages

4.  Post the Important Dates where you can see them

These refer to all of your business requirements (license renewals, tax reports, and tax payments).  Put the list somewhere on the wall or refrigerator, so you can reference it from time to time.  
Download Important Dates if reporting Annually with WA state.
Download Important Dates if reporting Quarterly with WA state.

Please consider leaving a Tip for any downloads.  :)

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Advanced ProTips

5.  Record all of the important dates on your calendar.  

+

6.  Record time to work on these in your calendar.

Perhaps a week or two before the deadline.

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7.  Prep Your Estimated Quarterlies

After you file your federal taxes with the IRS, prepare four envelopes to mail in your estimated quarterly payments.  Attach the payment stubs (hopefully provided by TurboTax or your accountant) and pin on a bulletin board.

Wherever you can, make this stuff fun + easy!  It'll make these chores more pleasant and bring you peace of mind.

Cheers!

: )  Jenny Girl Friday