<p>Can I ‘safely’ use something like LegalZoom for this? I have been offered a new job but it has a “contract-to-hire” 6 month trial period. I’m ok with that as I feel like this is a great job, but I don’t want to spend a ton of money just for 6 months!</p>
<p>Any tips? I will be doing corp-to-corp.</p>
<p>I just filed the paper and it was less than $100, but this was back in 2000ish time frame. I checked out the NOLO book from the library and filed the paper myself.</p>
<p>You could also use a vendor, like CSC or CT to get it filed. It will cost more, but they can review the filing for you, provide you with forms, and take care of the filing.</p>
<p>There might some confusion at play. </p>
<p>Are you sure you need to form a LLC (which is a corporation) for this purpose? The company will issue you a 1099 and you can safely report this income on your Schedule C. Unless there is a great amount of liability involved, there should not be a need to form a corporate vehicle, which is akin to having a baby. The initial costs might be low but they will increase in time. And it will NOT be 100 dollars! </p>
<p>Fwiw, check the contract with a eagle eye. The contract for hires are not always entirely legal. A contractor works independently and can establish his or her own hours, use personal computers, etc. If the company sets the hours, makes you work in their office on a regular basis, they simply screw you on the social security. You will be responsible for both sides of the payment, and this costs you 7.65 percent plus all other benefits accruing to “real” employees. It is also doubtful that, if your contract does not become a job, you will not be entitled to unemployment benefits.</p>
<p>Next to the unpaid internships, this is the biggest abuse. The biggest difference is that your employer is taking risks with disgruntled ex-contractors. Chances that they’'d lose a lawsuit is very high. </p>
<p>PS If the LLC is required by the hiring companty, chances are that they do this to cover their yaya! To keep it simple … do not form the company! </p>
<p>I was a “contractor” for a precast concrete company. I didn’t think about it, one way or the other (I was young). Well, the IRS decided to challenge this company’s use of contractor. The contractor’s bookkeeper talked to me and actually instructed me to LIE if the IRS contacted me! Tell them that I used my own computer, worked at home, etc. Thank goodness the IRS never called me, because of course I wouldn’t have lied to them.</p>
<p>$100 to form the corp but you have to pay state tax for forming the company, I think it was $800.
If you need the money/job then what choice do you have?</p>
<p>You get unemployment benefit when you have to let go of yourselves. I think I did but my memory could be failing.</p>
<p>The rate is financially advantageous so paying the 7.65% is fine, but I thought was only for 1099 and not for Corp2Corp. Agree that I’m not sure why I need LLC - I worked under a 1099 for years but have been an employee for the last 7. The “recruiting company” folks are telling me there are tax-advantages to the Corp2Corp (mainly in retirement savings I believe), but they would do 1099 if I insist. I will be receiving the paperwork soon and will read carefully - thanks!</p>
<p>The scenario is I will be a consultant to MY corp2corp working for the “hiring company” who will contract my services to the “real company”. I’m not worried about the abuse you mention, but I am worried about the “gray area” of independent contracting (that’s why I got out of it the first time). </p>
<p>But not sure how else contract-to-hire is done since it is becoming very popular in my line of work (software development).</p>
<p>We were told we could never collect unemployment if we worked for ourselves, whether set up as sole proprietorship or Corp S.</p>
<p>That’s ok with me!</p>
<p>It’s a little annoying since we have to pay into unemployment!</p>
<p>I bought a book on how to file in my state. BUT, I did spend some money (maybe $100) to talk to an accountant (who ended up being my business accountant) about the various corporation forms I could create and the pros & cons of each one. I ended up with an S-Corp. So I am corp-to-corp. Some things you need to be aware of:
<p>You get some legal protections if you form a corporation. If you mess up and get sued, it is hard for them to take your personal assets. If you plan to contract a lot in the long term, it is worth doing. But it is not headache free. I am sure there are things I am not thinking of on this list, too.</p>
<p>Maybe different states have different unemployment.
For short term, it’s not worth the hassle. </p>
<p>intparent, I did all that myself. I was the tax person. The hard part was to create the logo for my S-corp and getting a business checking account. I had to spend money to buy QuickBooks software and a printer. Printer was expensive back then.</p>
<p>I do all my bookkeeping (including dual entry GL) and make my own 941 payments, but I have my accountant create the actual returns as I am not an accountant and don’t want to mess those parts up. Works pretty well and not super expensive (I think I pay about $800/year to the accountant). Oh, and a million years ago I did pay a graphics person to create my logo, too. 
And just had to buy more business checks. sheesh. Ka-ching.</p>