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I would wait to form an llc until you've brought in 10k. Not sure about your 1099 aspect of the question, were I going to cut myself a salary I'd probably pay myself as a w-2 employee BUT you should not expect to be able to cut yourself a salary for at least the first 4 years of being in business.
Ideally you'd want to show your business as losing money or breaking even so that your taxes aren't retarded imo. Expenses should be = to your income so you can just write everything off.
Personally would make the llc formed out of Nevada as a parent company to the one out of CA as uou can form a company / llc anonymously in both Nevada & Delaware and hide ur identity.
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There are a few options based on what you're thinking, each with pros and cons.
- W2 - You are an employee of a business. They pay you, they report taxes, withhold taxes, pay employer fees, etc.
- 1099 - You are a contractor for a business. They pay you, but you are responsible for reporting and paying your taxes.
- Sole Proprietor/Regular person - You get paid as yourself. Risk here is that all of your personal assets are open if you're sued/a liability happens.
- LLC (Single Member) - The business gets paid. You are the single owner of the business. Tax is pass-through, meaning that whatever profit the business makes gets reported to your personal tax. The biggest benefit here is that if something happens in the business, your personal stuff is protected from a liability perspective.
- LLC (Multiple Member) - Similar to Single Member LLC, but you have partners. You have to define % ownership at the start and then you are taxed based on the % ownership. Meaning if the business makes $100,000 that year and you own 80%, you are responsible to pay 80% of the taxes even if you didn't pay yourself an income.
- C Corp - bigger companies, most likely would not apply to you
- S Corp - Kind of a mix between C Corp and LLC, but generally not worth the paper work until you're doing well.
If you are just starting, I suggest working as a Sole Proprietor because there's no extra paperwork or costs. Once you have cash flow and profit, consider making a Single Member LLC (note that there is an annual $800 fee just to own the LLC in California).
If each of your businesses are doing well, you might want to make multiple LLCs so that they are protected from each other. If they are all under the same LLC, then everything in the LLC is liable if something goes wrong with one.
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Yes sorry to confuse with the 1099/W2 I think sole proprietor is what I am after but I agree I need to wait.
Thank you SO VERY MUCH to both of you! This definitely gives me direction.
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sonderandtime is spot on here!
Corporation is a non-starter especially if you every want liquidate due to tax implications.
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What does TBY stand for?
To Be You?
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There are some instances where the LLC might not protect the personal assets. So, be careful if forming the LLC and understand when you can be liable.
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Some good advice given so far. I think every woman on here should start some sort of business entity especially if you provide other services & do OF Too.
If you’re currently a 1099 (independent contractor) you can start a simple DBA but I would design a plan to form an LLC , have few DBA’s under it, get a tax if (EIN#) , build corporate credit not using your social security #.
I do business consulting & can offer you a free consultation. Feel free to DM Me.
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weddings??
do you need a flower gal?
I may know one.
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Buy this book, incorporate and grow rich. each form of business is different and this book explains most of them. Then spend $350 for a good cpa and get specific advice to what you're doing.
you can thank me with a naked cuddle and a squeeze.
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Transitioning from a solo freelancer to a business owner is a major milestone. If you're looking to formalize your income and start "pouring back" into your future, taxes and Social Security, here is a basic roadmap for the TBYS Studio.
You don’t need a separate corporation for every revenue stream. The most efficient way to manage reselling, rentals, content, and art is through a Single-Member LLC with DBAs.
- Register one LLC (e.g., *TBYS Studio LLC*).
- Use DBAs for the different niches. This allows you to have one bank account and one tax ID while still branding yourself as "TBYS Art" or "TBYS Wedding Rentals."
- This provides liability protection. If someone trips over a wedding rental, your personal savings and assets are shielded behind the LLC.
As a 1099 or LLC owner, you are technically your own employer. To ensure you’re earning Social Security credits and staying square with the IRS, you’ll follow two main paths:
- Self-Employment Tax which ia around 15%. When you file your taxes, Schedule SE calculates your contribution to Social Security and Medicare. You pay both the "employer" and "employee" halves.
- S-Corp Once the business is consistently profitable which is typically $60k–$80k+ in profit, you can elect S-Corp status. You’ll put yourself on a formal payroll. You’ll receive a W-2 from your own company. And this is the most official way to automate your tax and SS contributions.
- Under $20k profit = Stay a Sole Prop. Focus on proof of concept. Use a separate business only. personal checking account to keep things clean.
-$20k–$60k profit = Form the LLC. This is for legal protection, especially for the rentals side of the business where physical liability is higher.
- Over $80k profit = Elect S-Corp Status. The tax savings on your distributions will now outweigh the cost of running payroll and extra filing fees.
If the business is still getting going, don't rush the legal paperwork. The biggest trigger shouldn't just be profit, it should be liability. If your business involves physical products or rentals where someone could get hurt or property could be damaged, form the LLC sooner rather than later to protect your personal life.
Lastly, start a tax bucket asap. Set aside 25–30% of every dollar that comes in. Even before you have a formal Corp, having that money ready for quarterly estimates will give you peace of mind.
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There is a box on the 1099's where taxes can be withheld. Maybe SS too ?
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Hey I really appreciate all of this so much, so thank you to you all I will start to do my research it is a lot to think about and do. It feels overwhelming but now I have some direction so thank you for that.
TBYS is a long time acronym that has changed for me over time.
In 2016 I had a business partner, a blog, and podcast. At that time it was called Take Back Your Sex. A nod to the idea that sex is political and to own it is a radical thought. I was in graduate school at the time and had decided to be a sex educator. That fell apart-long story-as did my marriage and everything else. I have the degrees though, and the experience. Graduated top of my class, proud to say.
But then after my own post divorce radical transformation when I started gardening more, I changed it to Take Back Your Seed. Because food, growing, health, and vitality, is political too as it turns out. And so it worked, the acronym, so I kept it. I feel passionate about both but champion one loudly and one quietly.
I also now do art, so henceforth the studios addition.
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If you’re in California, keep it simple at first.
You don’t need a corporation right away. You can operate as a sole proprietor while you’re getting things off the ground. Just open a separate business bank account, track all income and expenses, and set aside about 25–30% for taxes. When you file, your self-employment tax covers your Social Security and Medicare, so you’re still “pouring into” the system even without a W-2.
In California, an LLC costs $800 per year no matter what, so it usually doesn’t make sense to rush into one if you’re still under roughly $40–50k in profit and just testing ideas.
The main reason to form an LLC sooner would be liability; especially if you’re doing wedding rentals where someone could get hurt or property could be damaged. In that case, the protection may be worth the $800.
An S-Corp is usually something to consider once profits are consistently higher (often closer to $80–100k in California), because there are extra payroll and state costs involved.
So the simple path:
Start as a sole prop
→ get profitable and consistent
→ form an LLC when liability or income justifies it
→ consider S-Corp later.
And yes… confirm with your tax guy once you have real numbers to run 😉
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An LLC would probably only make sense if: a) you have substantial assets AND your business might be sued AND if you have the appropriate liability insurance; or  you will net more that $184k - in which case you want to set up your self as a W2 employee and the amount you would save on the self-employment tax (15% of the amount > 184k) is more than the payroll service costs and other LLC costs and minimum taxes and your what your tax person charges to file.
In short, start with a regular schedule c self-employed sole proprietorship. May you be blessed with the abundance that would justify an LLC.
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