15.3%
Self-employment tax on every dollar, on top of income tax
You're a Business. Let's Make It Official.
Let our accountants set up your business right so you actually save money on taxes. That's the whole point.
400% ROI on average
from our services
Based on avg. tax refund per client
from our services
Based on avg. tax refund per client
You're getting a 1099. You're overpaying your taxes.
A 1099 is how the IRS tracks income earned outside of traditional employment. It means no taxes were withheld, and you're responsible for all of it.
The good news? Receiving a 1099 means you're running a business. And businesses have legal tools to reduce that bill significantly.
15.3%
Self-employment tax on every dollar, on top of income tax
$400
Minimum net profit that triggers self-employment tax liability
25–30%
Of income most 1099 workers are advised to set aside for taxes
You're paying more tax than you should be
Without the right entity structure, the IRS treats every dollar you earn as self-employment income. That's an extra 15.3% tax.
The fix is even simpler than you think
Talk to an accountant. Get the right entity. Elect the right tax treatment. Save thousands. That's what we do.
Who gets a 1099?
Earning through these platforms likely means you receive a 1099, potentially overpaying taxes without the right business structure. Even without a 1099 due to low earnings or cash payments, the income is still taxable, and entity formation may still benefit you.
Content Creators
YouTube, TikTok, Twitch, and brand sponsors generate 1099s. Equipment and software costs are deductible.
Real Estate Agents
Commission-based agents receive 1099s. Marketing, MLS fees, and vehicle use are deductible.
Freelancers & Consultants
Anyone paid $600 or more by a client receives a 1099-NEC. Software, equipment, and subscriptions are business expenses.
Rideshare Drivers
Uber and Lyft drivers receive a 1099-K or 1099-NEC. Vehicle costs, mileage, and phone expenses reduce taxable income.
Online Sellers
Etsy, eBay, and Amazon sellers receive a 1099-K. Product costs, shipping, and platform fees are potential deductions.
NIL Athletes
College athletes receiving name, image, and likeness income are treated as self-employed. Proper entity setup matters from day one.
Delivery Drivers
DoorDash, Uber Eats, and Instacart drivers receive a 1099-NEC. Mileage and equipment are commonly missed deductions.
And More
Truck drivers, home service pros, photographers, tutors, coaches, and anyone paid as an independent contractor.
Not all 1099s are the same.
The three forms most relevant to gig workers and independent contractors:
1099-NEC
Who receives it
Freelancers, contractors, and gig workers paid directly by a client or platform.
2025 Threshold
$600 or more in nonemployee compensation.
1099-K
Who receives it
Sellers and creators paid via payment processors like PayPal, Venmo, Etsy, and Amazon.
2025 Threshold
$20,000 or more and 200 or more transactions.
1099-MISC
Who receives it
Recipients of rent, royalties, prizes, legal settlements, or other miscellaneous income.
2025 Threshold
$600 or more (most categories).
For a full breakdown of all 1099 form types, see our complete guide on the 1-800Accountant blog.
Why your 1099 income is taxed harder, and what to do about it.
1
The Problem
The self-employment tax
W-2 employees split Social Security and Medicare taxes with their employer, each paying 7.65%. When you are self-employed, you pay both sides: the full 15.3%.
2
The Solution
How an S-Corp election changes the math
An LLC with an S-Corp tax election lets you split income into a salary (subject to payroll taxes) and profit distributions (not subject to self-employment tax).
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Calculator
Adjust the sliders below to match your business.Adjust the sliders below to match your business details
$50k$2M+
1100+
15%40%
Estimated Annual Savings
Based on common deduction and tax strategies
$37,500
Quarterly taxes: what 1099 workers owe and when.
Unlike W-2 employees, 1099 workers have no taxes withheld. The IRS requires you to pay as you go in quarterly estimated payments, and missing these payments can trigger underpayment penalties.
Q1
Apr 15
Q2
Jun 16
Q3
Sep 15
Q4
Jan 15
Calculate your quarterly payment
Our calculator estimates what you owe each quarter based on your income and deductions.
Recent changes affecting 1099 workers
TaxesSmall Business
Your path to tax savings
See how our accountant-first approach turns your 1099 income into real savings.
Step 1
Talk to an Accountant
A credentialed tax specialist reviews your income, expenses, and tax situation to recommend the right entity and structure.
Step 2
We Form Your Business
LLC, S-Corp election, EIN, and more. We handle all paperwork and state filings, set up to help minimize your tax bill.
Step 3
AI Bookkeeping Keeps You Clean
Our AI categorizes your expenses every month so you never miss a deduction. No more shoeboxes of receipts.
Ongoing
We File & Maximize Your Savings
Annual business returns, S-Corp payroll, and quarterly estimates. We handle everything and help you capture every dollar of savings.
The Result
The right entity, clean books, and a tax strategy that keeps more money in your pocket year after year.
Frequently Asked Questions
Everything you need to know about 1099 income, entity formation, and how we help you keep more of what you earn.
Because the entity type and tax election you choose determines how much you save. An LLC taxed as a sole proprietorship saves you nothing on self-employment tax. An LLC with an S-Corp election can save you thousands. The right answer depends on your income, expenses, and situation — and an accountant can figure that out in one conversation.
Yes. Even at $30-40K in 1099 income, the right entity structure can save you $3,000-5,000/year in self-employment tax alone. Our Independent plan pays for itself many times over.
An S-Corp election lets you split your income into salary and distributions. You only pay self-employment tax (15.3%) on the salary portion. On $100K in income, this can easily save you $7,000+ per year. We handle the Form 2553 filing with the IRS.
Yes — it's your business's identity number with the IRS. You need it to open a business bank account, file taxes as a business, and make your S-Corp election. We can get one for you, typically within one business day.
It automatically categorizes your income and expenses every month, tracks deductions you'd otherwise miss, and keeps your books clean so tax time is seamless. No more spreadsheets. No more guessing.
Stop overpaying. Start saving like a business.
Talk to an accountant. Get the right entity. Keep more of your money. It takes less than 10 minutes to start.