How much admin stuff do you need to do BEFORE you start working as a 1099?
I get a lot of questions about what administrative steps need to be taken before someone can start their solo 1099 work.
- Do you need to start an LLC?
- How do I create a website?
- What about taxes?
- What about health insurance?
- Should I get a business checking account?
The truth is, while you will definitely need to complete a few administrative actions in order to start working on your 1099 federal sub-contract, I recommend you don't worry about it until AFTER you have landed your first gig.
It's fun to think about the cool website you're going to build or what your job title will be on your business card, but these are big distractions and time wasters when you're just getting started.
Your most important task as an aspiring 1099 solo federal sub-contractor is...to get your first 1099 federal sub-contract!
Once you get a program manager to agree to a sub-contract, you can complete all the admin stuff in a week or two. No big deal.
Don't let the thought of trivial paperwork distract you from getting your first 1099 gig.
If you insist on doing a few admin items, here are a few things that don't cost much money or take much time:
- Register for a single member LLC in your state of residence (Cost $100-$200)
- Get an Employer Identification Number (EIN) for your LLC (Cost $0);
- Get a DUNs number (Cost $0)
- Register your business in SAM.gov so you can get a CAGE code (Cost $0)
- Get a website domain name for your business (Cost <$20)
- Get a business e-mail address (with Google it is $6/month)
That's it. Don't build a website, don't get a business checking account, and don't get business cards.
If you have questions feel free to reach out to me directly at firstname.lastname@example.org. I can also add you to my informal mailing list in case I have updates or news or whatever.
I wrote a book about becoming a 1099 solo federal sub-contractor. I cover all the admin stuff you need to do as a 1099.
You can read more about it here: