GREENWOOD ACQUIRES VALENCE TO PROVIDE PROFESSIONAL DEVELOPMENT AND JOB RECRUITING FOR THE BLACK COMMUNITY. Learn more.
If you’re doing side hustles–shout out to you for being outgoing and creating multiple streams of income! Here are a few insider tips that you may find helpful:
As a 1099 contractor, you’re not an employee of the company you’re providing services for, so you likely won’t receive employee benefits like retirement savings and employer matches, healthcare, and withholding of taxes, and no employers to cover social security and medicare taxes.
On that note, to avoid a heartbreaking tax bill, tuck money away for taxes. So if you earned $5,000 for a project, you will want to earmark at least 30% or $1,500 to pay for taxes come April 15th.
Most side hustlers create an LLC and understand that this is not a tax status, it involves your business structure. However, it is worth the few hundred dollars to get it established. Why? It’ll reduce your personal liability from your company if something goes left. I did a video on Business entities a while back – it’s linked below and you should watch it.
Being a 1099 worker is a great way to create multiple streams of income and give yourself the gift of freedom. However, freedom comes with its own responsibilities, so make sure you know what they are. Happy 1099-ing!
Found this helpful? Make sure you click the follow for more of Greenwood Daily!
Rianka R. Dorsainvil, CFP®️ is the Co-Founder and Co-CEO of 2050 Wealth Partners a virtual, fee-only comprehensive financial planning firm dedicated to serving first-generation wealth-builders, entrepreneurs, and thriving professionals. Rianka also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.
As an award winning successful, millennial Certified Financial Planner professional, Rianka offers a unique perspective not only on the current state of the financial service industry, but on how to stay relevant in an ever-changing world.
Rianka serves as a member of CNBC’s Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance Contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations such as Investment News’ inaugural 2017 Women to Watch Rising Star and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.