Independent sales rep should they incorporate ?

by Bobby
(miami,fl usa)

Independent sales rep should they incorporate ?
my wife is a MaryKay consultant and i an independent sales rep for a manufacturing company.Should we incorporate seeing that everything is paid on commission on a 1099 ?
thanks.

Answer

Take a look at the basic reasons to incorporate--protecting your assets and potential tax savings.

I'd say it's a toss-up for your wife--the MaryKay consultant--and that you probably don't need to incorporate.

As a reseller of MaryKay products, if there is, for example, a products liability issue (say the cosmetics injure people), then the resellers could get dragged in.

Having a corporate form would protect your personal assets in that situation.

Only you can decide if the expense is worth it.