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Should I form an LLC?

post #1 of 7
Thread Starter 

Hi,

 

I just was hired as a Private Chef for a Corporate Fishing Lodge. They pay via 1099. Should I get an LLC to help protect me?

post #2 of 7

You weren't hired exactly---you engaged in a contract for services---and will be liable for all losses while your company (you) provide these services.---So get proper liability insurance and hire an accountant to guide you----

 

Your location is not known--but in the USA you will have to pay 15% social security along with your quarterly state and federal taxes----

 

Why aren't they paying you as an employee?  If you get hurt on the job your own health insurance will have to cover the loss--not work mans comp like it would as an employee----

 

This sounds like a crooked deal----

post #3 of 7

Depends upon far too many different factors to make a blanket statement call on formation of a LLC. The primary factors that I would evaluate if in a similar sitaution would be:

 

what country am I in

what country is fishing lodge in

if USA, what state would the LLC be formed in and what state would the work be in

projected length of relationship with fishing lodge

cost of LLC

$ amount of personal assets

Wisdom comes with age, but sometimes age comes alone.
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Wisdom comes with age, but sometimes age comes alone.
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post #4 of 7
Thread Starter 

I am currently covered for health insurance under my wife's work. The job pays low six figures in southern Louisiana. I will be taking care of 8-16 people at a time, two meals per day. This is for a major corporation as opposed to private individuals. 

post #5 of 7

At the very minimum, I would secure:

  • Liability insurance, $2 million minimum
  • Business license applicable in your area
  • ServSafe, NRFSP, or equivalent Food Safety Manager's certificate, not just a food handler's card!

 

An LLC will only protect your assets in the event of a disaster, assuming you set it up correctly and operate it correctly.

 

It does sound peculiar that a major corporation will retain you as an independent contractor unless there are some other factors involved, unions, etc.

 

As stated before, you will be responsible for SS, MediCare, and Estimated Income Tax payments regardless as to your legal entity.

 

Rather than relying on an internet forum, seek some advice from someone with the "chops", i.e. SBA, IRS, an attorney, etc.

Chef,
Specialties: MasterCook/RecipeFox; Culinary logistics; Personal Chef; Small restaurant owner; Caterer
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Chef,
Specialties: MasterCook/RecipeFox; Culinary logistics; Personal Chef; Small restaurant owner; Caterer
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post #6 of 7

This sounds like a good opportunity ----a good accountant will guide you---Good luck--let us know how things work out---others will learn from your experience---

post #7 of 7

These are really questions for an accountant and/or attorney.  Not for strangers on a web forum.

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