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Hi , need likes for DM Feature , Thank you.
Thoughts on Sensis agency? Work/life balance?
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Hi , need likes for DM Feature , Thank you.
Thoughts on Sensis agency? Work/life balance?
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For SOX and liability it’s becoming harder to pay freelancers on 1099. For smaller , independent agencies it shouldn’t be an issue though .
Some agency’s won’t hire freelancers under a W9. In my experience WPP network agency’s for example run you through a W4. There are odd potential advantages to this - for example, was offered healthcare through JWT even if I only freelanced a week there but if you’re an S-Corp it’s too your advantage to try and get on a W9. Some other networks require an extended approval process to get you listed as a vendor but worth a little extra paperwork, in my opinion for the year-end tax savings.
@senior copywriter 1 Honestly not really sure but I believe you can write off more of your expenses and if you invest you get to hold all of your money for the quarter before paying your estimated taxes so potential to make more money there as well.
1099 for me.
@Creative Director 1: Do you have to have an LLC to be listed as a vendor ?
@Creative Director OP No, S-Corps or any corporation ought to count. There might be agency specific guidelines and encountered it more frequently with direct-to-client projects but places like Hudson Rouge for example needed extra paperwork, vendor NDA’s, etc. If it’s too daunting you can almost always go the W4 route instead but I find it worth the extra hassle, for the tax advantage. I suspect you need an EIN number to qualify as bare minimum which would mean LLC or an S-Corp.
@Creative Director 1 So you probably can’t be approved as a vendor as a sole proprietor (so no EIN) correct?
Creative Director OP - Probably not. That said, should be able to go in as a normal W4. It really is specific to the agency/holding company, however. I don’t think it’s necessarily a legal requirement but typically you hire a vendor under a different criteria then you do an employee, at least from an administrative perspective.
Got it. Thanks for the responses!
CD1: Do you ever mention your W9/S-Corp status before your first day to avoid situations like the WPP one? I've already gone through the trouble of setting up an S-Corp, I'd like to know before I start a job if they won't let me do it. And is that legal for WPP to have that policy? Like they literally will not pay you as an S-Corp?
Sorry for how rudimentary this is, but what is the advantage of a 1099? I'm about to start negotiating my first freelance contract, and am currently drawing unemployment, which I can apparently continue to do if I am "self employed?"