Why be Independent
The lure of independence: More money, more flexibility, be your own boss.
Being an Entrepreneur, Independent Contractor, Independent Consultant, Independent Professional, Self Employed, Sole Practitioner, Freelancer, or 1099er is part of the American dream. Entrepreneurship is also a driving force of economic development. It will continue to be the fastest road to new independent wealth in America in the next decade.
The realities of today’s economic environment can be the opportunity of a lifetime to control and succeed at what you do best. With the back office support of iamindependent (IAI), you can get all the benefits and services of a W-2 employee, with the flexibility of still being your own boss.
Call your own shots: You may already know the distinct and lucrative advantages of being independent:
As an independent professional the following time and money eating burdens are assumed by IAI so you can focus on what you do best:
iamindependent-employee vs. Self-employed Person
We asked the accounting firm of Infeld Barr CPAs to create a tax return for one of our members, an iamindependent-employee (W-2) and then to create a tax return if this consultant filed as a self employed person (1099).
The consultant had the following:
The self-employed person has an additional $1,000.00 in accountant fees and $5,000.00 in various insurances.
The iamindependent-member will incur two additional expenses; the IAI fee of $6,000.00 and the exclusion fee for meals and entertainment of $5,637.00.
While the expenses for the iamindependent-employee (IAI member) are greater, the retained earning of the IAI member is 22% higher.
The worksheet starts with the $202,534.00 invoiced for both the member and the self employed person.
The non-reimbursable expenses are IAI's fee of $6,000.00, employer taxes of $6,696.00, employee taxes of $6,696.00, income taxes of $15,000.00 and the entertainment exclusion of $5,637.00 for a total of $40,029.00. IAI reimbursed the member for the IRS approved tax-deductible employee’s expenses of $103,464.00. The member’s total after tax retention is $59,041.00 (not including the retirement plan $8,753.00) or 80% ($59,041.00+$103,464.00)/ $202,534.00.
The self-employed person invoiced the same amount of $202,534.00. The non-reimbursable expenses are $10,276.00 for health insurance, self-employed payroll taxes of $14,723.00, income taxes of $19,774.00, and business expenses of $109,464.00 ($80,334.00 is tax deductible). The net amount retained is $48,297.00 (not including the retirement plan of $8,753.00) or 64% ($80,334.00+$48,297.00)/ $202,534.00.
The iamindependent-employee has retained $59,041.00 versus the self-employed person of $48,297.00 or an increace of 22%. Adding back the reimbursed IRS tax deductible business expenses, the iamindependent-employee has a retention rate of 80% versus 64% for the self-employed person.
Once you review this information, we have no doubt that you will be convinced.