Hacker News Reader

Comment by newman8r | Hacker News Reader

Could these people just form an LLC to get around this? So you'd be acting as a business not an individual.

That's exactly what they have to do and some are. However, forming and running an LLC can have it's own headaches depending on the type of business you're running. In some industries, running as an LLC would cost you more than you'd make as an IC.

Seems that the option of running as an IC is going to disappear for many, no?

There are few exceptions to the new law, and even the exceptions have to pass the Borello Test.

What industries does an LLC cost that much to run in?

I've had one for years, it costs less than $250 annual to actually maintain the LLC.

Piece work that doesn’t pay well. The tax complexity alone likely blows an SB Nation writers pay out of the water.

> Tax complexity

As in Schedule C, on a standard tax form? Most online tax software can handle basic LLC income.

Taxes only get complicated when you want to optimize the amount you owe. Depreciating assets, hiring, firing, claiming losses, etc.

In CA LLCs have to pay a minimum state tax of $800, plus some misc. other fees depending on location.

I would assume certain industries require special permitting or licensing for LLCs.

In California, the state where this law applies, they start at $800/year and go up from there.

They could.

But for many things, it's just easier for everybody to just not deal with California.

Reply on news.ycombinator.com