NEW JOB HELP 1099 or W-2

[fonfukajoe]

Hi! So I’ve recently left my salon of 2 years. Due to toxic environment.

I’ve gotten a few job offers.

Most are offering 60% commission, w-2 employee, benefits. They would schedule my appointments. They would make my schedule and decide when I come and go. You’re standard job right?

Anyway.

Another is offering 1099 and I know I’ve heard people say stay away from 1099 but I’m not sure why. As this sounds like a good deal. Is it bc you get fucked on taxes? The deal here is- I am my own business. I’m renting a space out of her building and I am completely separate from her. I make my own schedule. Find my own clients. Make my own prices and fees. It’s literally 100% my business. She is just asking for 1000$ rent. Which compared to every where else is LOW. most want at least 1800$ rent. The way I look at it is, I’d be paying more than 1000$ a month in rent or loans if I were to go out and open my own shop somewhere. I’ve already looked into business insurance and I can afford that. I know I’d need to get an LLC. So this is a good deal right?

Am I missing something??

I need opinions or if you’ve had experience with something like this how did it go for you??

Thanks!!!

 

[glassmenagerie_]

@fonfukajoe If its truly 1099 and you can make more then go for it which from what your saying it sounds like it is.

 

[thankfullness]

@fonfukajoe This sounds like an actual 1099. Make sure everything is in writing and signed by both parties. 1099 is only bad if they want you to act and do things like an employee.

 

[nobodyimportant]

@fonfukajoe It also depends on what state you are in. Some, like NJ for example, have strict rules on who can do 1099 within another business. Check your state's laws to be sure.

 

[reallyconfused0512]

@fonfukajoe It wouldn't be 1099 though because you'd be signing a lease, right? That would give you a tenant/landlord relationship, not employee/employer.

 

[reallyconfused0512]

There are several FB groups that can offer more assistance since they're filled with accountants and other professionals in this field. I'd recommend posting there for advice.

 

[cazamal]

@fonfukajoe

Another is offering 1099 and I know I’ve heard people say stay away from 1099 but I’m not sure why. As this sounds like a good deal. Is it bc you get fucked on taxes?

many people on here say to avoid a 1099 situation because a lot of them are set up illegally.

Basically a worker is still paid (a percentage of commission from each groom) and treated (must follow store hours, you get the shop's clients, you may be expected to perform additional duties) like an employee, but is being taxed as an independent contractor.

It's a workaround that makes it so the owner of the shop doesn't have to pay any payroll taxes, but you have to pick up the slack and pay taxes on a "business" you don't own, or really know you have.

 

[fonfukajoe]

@cazamal Okay makes sense! I’d have my own set of keys, make my own hours, own business name/LLC, own clients, I’d be responsible for my own promoting and gaining my own clients. My own tools, supplies, and products. The only thing if “hers” I’d be using is her tubs. So I think from what I understand this is a pretty legal LLC. So I’m thinking it might be a good route to go!

 

[emsw]

@fonfukajoe I'm sorry, 60% commission at a W2 job? Like you get 60% of the cost of the groom? I'm only making 30% commission as a W2 Mobile groomer, what's standard?

 

[fonfukajoe]

@emsw Yes. I’m also in a big city Phoenix Arizona and there is a huge demand for groomers right now. Not sure where you’re located but maybe that has something to do with the high pay out here but 60% or more has been the offer for every place I’Ve applied and gotten a job offer from so far