I've been a regular on Kitchens and Baths for a long time. I went to a couple of tax forums, but decided that before I join another forum, I would pose my question to GW first.

My husband has a business license with a state and federal ID, of course. I have taught fitness classes for over 20 years and was always an employee rather than an independent contractor. I now have the opportunity to pick up a class once a week at a facility that requires me to have my own license as an independent contractor. They wanted me to start Oct. 1, but I can't have a license that quickly. Am I allowed to use my husband's number temporarily? Can he add my name even though mine would be service and his is retail? Is there another option?

I called the state Friday and nobody answered the phone; not even a message machine came answered. I have a feeling they are on the 4 day work week.

Any help is appreciated!

There is a difference between a business license and a state/federal tax ID. Are you talking about a license or an ID number? Two completely different things.

So when you call and ask questions, be sure that you have the correct nomenclature so that you don't confuse things more.

Sorry that I can't help. Hope it works out ok, tho.

If you need to be licensed by your state, I would look at your state's website and see if you need a specific license to be a fitness instructor in your area.

See the link below and go to "APPLY ONLINE NOW" to get the EIN. It only takes a few minutes. If you are an independent consultant you are supposed to choose "Sole Proprietor" when you get to business type.

Three different things:
Tax Federal ID number,
state license for your job, if needed, and
city business license, if needed.

I talked with my current boss this morning and she told me that she always considered me an independent contractor and I do get a 1099.

I asked a few others that have their own businesses and they said my SS# should be sufficient. I finally got through to the state and they verified I should use my SS#. I am only providing services and getting paid by the club. No money is received from clients.

Now, I just got an email from this new employer stating that my SS# should be fine and I can start Friday. She isn't the HR gal, so I am not blaming her. However, HR should have told me this from the beginning. Maybe they need more training, I don't know. I have an HR degree too. Maybe this instructor job will segue into something more. Just kidding! I never actually worked in the field as circumstances sent me into an education field.

Anyway, thanks for the help. At least I have the EIN and can start on time. As for a city license, I am not even going to open that Pandora's box!

Also, if you have been working for years and haven't noticed the difference between a 1099 and a w2, you need to see a tax professional immediately.

Billl, I never said I don't know the difference. What I said was I do get a 1099 from my current employer. I have also received W-2's from some of the larger clubs. Every place I have worked has covered me under its insurance; I have never needed to carry my own liability insurance nor have I needed to set up my own company. I didn't understand why this new company couldn't just hire me under a 1099 with my own name and SS# and just require the liability insurance from the beginning. Essentially this is what they ended up doing. For a whopping $9,000 a year, I probably won't waste my time on either a lawyer or a tax professional.

If you get a 1099, you don't have an employer - you have a contract.

If you are going to work as an independent contractor without insurance, well....I wish you the best of luck but I wouldn't recommend it. Whether you realize it or not, you are taking a significant risk. We aren't talking about 9k a year - more like everything you own. We live in a country where anyone can sue anyone for any reason under the sun.

As Bill stated you need to talk to an attorney to establish a company plus a tax person to clear up any back taxes you owe.

Good Luck, sounds like you will need a lot of it.

Please follow Bill's advice and have someone in your state look at your tax situation. Liability insurance may be the least of things that you should be concerned about.

I worked for years as a contractor for two businesses. Any accountant and ALL tax preparation software programs have all the rules and information needed. OF COURSE I paid my self-employment taxes! And I'm confident the OP did too.

Form 1099MISC has a block for Federal and state income taxes withheld but there is no block for Medicare or Social Security taxes withheld.

Personally, I think companies that hire people as independent contractors should be obligated to tell the individual that they will owe self employment taxes. Many fail miserably at doing this.

I also know that there are many companies who hire people as independent contractors who should be classified as employees which is a totally different subject.