{"id":5397,"date":"2022-02-08T12:43:51","date_gmt":"2022-02-08T17:43:51","guid":{"rendered":"https:\/\/falconexpenses.com\/blog\/?p=5397"},"modified":"2023-01-02T17:42:46","modified_gmt":"2023-01-02T22:42:46","slug":"independent-contractor-corporation","status":"publish","type":"post","link":"https:\/\/falconexpenses.com\/blog\/independent-contractor-corporation\/","title":{"rendered":"Can I be an independent contractor for my own corporation?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dd17d711c95\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dd17d711c95\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/falconexpenses.com\/blog\/independent-contractor-corporation\/#Are_you_self-employed_and_want_to_know_if_you_can_be_an_independent_contractor_of_your_own_corporation_Read_this_article_to_find_out_and_also_determine_if_you_should_form_a_company\" >Are you self-employed and want to know if you can be an independent contractor of your own corporation? Read this article to find out and also determine if you should form a company.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/falconexpenses.com\/blog\/independent-contractor-corporation\/#Do_I_need_an_LLC_to_be_self_employed\" >Do I need an LLC to be self employed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/falconexpenses.com\/blog\/independent-contractor-corporation\/#Should_self-employed_incorporate\" >Should self-employed incorporate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/falconexpenses.com\/blog\/independent-contractor-corporation\/#Can_I_be_an_independent_contractor_of_my_own_corporation\" >Can I be an independent contractor of my own corporation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/falconexpenses.com\/blog\/independent-contractor-corporation\/#When_should_an_independent_contractor_incorporate\" >When should an independent contractor incorporate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/falconexpenses.com\/blog\/independent-contractor-corporation\/#Can_I_incorporate_my_business_myself\" >Can I incorporate my business myself?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/falconexpenses.com\/blog\/independent-contractor-corporation\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<h2 class=\"wp-block-heading\" id=\"are-you-self-employed-and-want-to-know-if-you-can-be-an-independent-contractor-of-your-own-corporation-read-this-article-to-find-out-and-also-determine-if-you-should-form-a-company\"><span class=\"ez-toc-section\" id=\"Are_you_self-employed_and_want_to_know_if_you_can_be_an_independent_contractor_of_your_own_corporation_Read_this_article_to_find_out_and_also_determine_if_you_should_form_a_company\"><\/span>Are you self-employed and want to know if you can be an independent contractor of your own corporation? Read this article to find out and also determine if you should form a company.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image alignwide size-full\"><a href=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2022\/02\/can-i-be-an-independent-contractor-for-my-own-corporation.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"563\" src=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2022\/02\/can-i-be-an-independent-contractor-for-my-own-corporation.png\" alt=\"Can I be an independent contractor for my own corporation?\" class=\"wp-image-5400\" srcset=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2022\/02\/can-i-be-an-independent-contractor-for-my-own-corporation.png 1000w, https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2022\/02\/can-i-be-an-independent-contractor-for-my-own-corporation-300x169.png 300w, https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2022\/02\/can-i-be-an-independent-contractor-for-my-own-corporation-768x432.png 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><figcaption class=\"wp-element-caption\">Can I be an independent contractor for my own corporation?<\/figcaption><\/figure>\n\n\n\n<p>As the gig economy expands and more people work as independent contractors you\u2019re probably asking, can I be an independent contractor for my own corporation?<\/p>\n\n\n\n<p>Typically, when you think of an independent contractor, a gig worker, or someone who is self-employed you think of somebody that works for themselves.&nbsp;<\/p>\n\n\n\n<p>However, sometimes independent contractors get confused and wonder if they should form an actual legal corporate entity, or rather an official business.<\/p>\n\n\n\n<p>Colloquially, self-employed and independent contractors call themselves small business owners. However, that doesn\u2019t mean they\u2019ve formed their own company, such as an LLC or corporation. When you\u2019re an unincorporated self-employed independent contractor (also known as a <a href=\"https:\/\/falconexpenses.com\/blog\/what-is-a-sole-proprietor\/\">sole proprietor<\/a>) everything\u2014your income, expenses, and liabilities\u2014gets funneled through your own personal bank account.<\/p>\n\n\n\n<p>In this article, we answer whether a self-employed independent contractor should form a company, if they need to, or are required to incorporate, and how they would work for their own corporation.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-is-a-corporation\">What is a corporation?<\/h3>\n\n\n\n<p>The formal definition of a corporation is a legal entity that is separate and distinct from its owners.<\/p>\n\n\n\n<p>There are a variety of different types of corporations in the United States. Such as S Corp or a C Corp, etc. Each of them has different attributes and tax structures.&nbsp;<\/p>\n\n\n\n<p>However, the most common type of independent legal entity that a self-employed independent contractor forms is an LLC. An LLC is the simplest of all formal legal entities. LLC is short for Limited Liability Company.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"do-i-need-an-llc-to-be-self-employed\"><span class=\"ez-toc-section\" id=\"Do_I_need_an_LLC_to_be_self_employed\"><\/span>Do I need an LLC to be self employed?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The most common type of legal entity for a self-employed independent contractor to form is an LLC. However, you\u2019re not required to have an LLC if you\u2019re self-employed. Actually, you\u2019re not required to form any legal entity or corporation if you\u2019re self-employed. You can simply work for yourself and when it comes time to do your taxes you just attach a <a href=\"https:\/\/falconexpenses.com\/blog\/what-is-an-irs-schedule-c-form\/\">Schedule C<\/a> to your personal income tax return form 1040.<\/p>\n\n\n\n<p>Although, many self-employed independent contractors, freelancers, and delivery drivers want to form a company that is its own legal entity. This is particularly true with the rise and growth of those working as independent contractors and the rise of the gig economy.<\/p>\n\n\n\n<p>Many independent contractors are working for a lot of different companies, and have many clients and different income streams. Therefore, if you fall into this category you might be asking yourself should freelancers incorporate?<\/p>\n\n\n\n<p>It\u2019s advisable to start an LLC for yourself, given that the process is immensely simplified nowadays. You can even avoid paying legal fees and complete the process online. This option is available in most states, so we recommend you read further in this guide on <a href=\"https:\/\/startupsavant.com\/how-to-start-an-llc\/california\" target=\"_blank\" rel=\"noreferrer noopener\">how to start an LLC in California<\/a> or browse to find the preferred locations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"should-self-employed-incorporate\"><span class=\"ez-toc-section\" id=\"Should_self-employed_incorporate\"><\/span>Should self-employed incorporate?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Should freelancers incorporate?<\/p>\n\n\n\n<p>Whether you should or shouldn\u2019t incorporate is a personal decision. There are advantages to incorporating even if you\u2019re the only employee.&nbsp;<\/p>\n\n\n\n<p>Some advantages to forming a company, such as a single-member LLC, are you have a legal distinction between yourself and your business. Often this is called the corporate veil. We advise you to consult a lawyer to get more details on how to maintain the corporate veil if you do choose to incorporate or are already incorporated.&nbsp;<\/p>\n\n\n\n<p>Independent contractors that form their own company also get to take advantage of the same <a href=\"https:\/\/falconexpenses.com\/blog\/self-employment-tax-deductions\/\">self-employed tax deductions<\/a> that they did when they were sole proprietors. A great way to keep track of tax deductions is by using an <a href=\"https:\/\/falconexpenses.com\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>expense tracker app<\/strong><\/a>.<\/p>\n\n\n\n<p>One of the main benefits of having a company that is its own legal entity is it makes you look more professional and credible to your clients and customers.<\/p>\n\n\n\n<p>In addition, forming a company has potential tax advantages if the revenues from your business are substantially larger than your personal cash needs. We highly recommend that you speak to an accountant or CPA if this is the case for you and your business. This is because there could be potential tax advantages that you\u2019re missing out on.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"can-i-be-an-independent-contractor-of-my-own-corporation\"><span class=\"ez-toc-section\" id=\"Can_I_be_an_independent_contractor_of_my_own_corporation\"><\/span>Can I be an independent contractor of my own corporation?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can be an independent contractor and have formed your own company. However, it wouldn\u2019t make sense for you to be an independent contractor of your own business, if you were the sole owner of that business. However, consult a lawyer or accountant for more complex situations that bring up the question about whether or not your own business, which you solely own, should contract you to do work for it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"when-should-an-independent-contractor-incorporate\"><span class=\"ez-toc-section\" id=\"When_should_an_independent_contractor_incorporate\"><\/span>When should an independent contractor incorporate?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There is no specific time when you should form a company that is its own legal entity. For some self-employed sole proprietors, it might make more sense to wait a bit. This is especially true if you\u2019re just starting out as a self-employed independent contractor or gig worker such as a delivery driver. This is because perhaps you\u2019re not sure how much money you\u2019re going to make or how long you\u2019re going to be doing this business. Though if you feel like this is the career path for you, then forming a company such as a single-member LLC might be better from the start.&nbsp;<\/p>\n\n\n\n<p>And, if you\u2019ve already been in business for quite a while as a self-employed independent contractor or gig worker, particularly if you\u2019re generating a lot of income, it might make sense to look into forming a business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"can-i-incorporate-my-business-myself\"><span class=\"ez-toc-section\" id=\"Can_I_incorporate_my_business_myself\"><\/span>Can I incorporate my business myself?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yes, you can form a business such as single-member LLC by yourself. The corporate entities, such as an S Corp or C Corp, might be a little bit too much structure for a small business owner. All of the benefits that a small business owner would want from forming a separate legal entity for their business are likely available to them with the LLC legal structure. There are many online resources to help self-employed individuals and freelancers start an LLC. Also, you can consult a lawyer to help you as well.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The decision about whether or not to form a business that is its own legal entity as a self-employed independent contractor such as a gig worker, delivery driver, or just a freelancer is a personal one. However, it is a growing trend for self-employed independent contractors to incorporate. As the gig economy expands and more and more people are making their income independent of being a traditional 9 to 5 employee, the options of incorporating are being investigated more. We personally feel that it\u2019s advantageous but again it\u2019s a personal choice.<\/p>\n\n\n\n<p>Why did you choose to form a company?<\/p>\n\n\n\n<p>If you\u2019re a freelancer independent contractor that\u2019s recently or in the past formed a company, such as an LLC or single-member LLC? <br>We would love for you to share in the comments your experience.<\/p>\n\n\n\n<p>We would love for you to share with our community why you chose to incorporate and what are some of the benefits that you are getting from this choice.<\/p>\n\n\n\n<p>Also, you can share your experience with us at <a href=\"mailto:support@falconexpenses.com\">support@falconexpenses.com<\/a>.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Are you self-employed and want to know if you can be an independent contractor of your own corporation? Read this&#46;&#46;&#46;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":20,"featured_media":5400,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1974,2874],"tags":[2918,2083,33,2700,2891,583,34,2646,2919,2917],"class_list":["post-5397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-self-employed","category-small-business","tag-corporation","tag-delivery-driver","tag-freelancer","tag-gig-economy","tag-gig-worker","tag-incorporation","tag-independent-contractor","tag-llc","tag-pass-through-taxation","tag-s-corp"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts\/5397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/comments?post=5397"}],"version-history":[{"count":1,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts\/5397\/revisions"}],"predecessor-version":[{"id":5916,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts\/5397\/revisions\/5916"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/media\/5400"}],"wp:attachment":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/media?parent=5397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/categories?post=5397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/tags?post=5397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}