FAQs

Often, yes. Making quarterly payments helps you avoid IRS penalties and ensures you stay on track with income and self-employment taxes.

You may face penalties or interest. A tax professional can help you plan quarterly obligations.

No. Contractors are responsible for their own taxes, including quarterly payments (if required).

This includes both the employer and employee portions of Social Security and Medicare taxes (approx. 15.3%).

Both structures typically report income via personal tax returns (Schedule C). LLCs have the option to elect S-Corp status later if income grows, which may reduce self-employment taxes.

Absolutely. Many IC caregivers start small and transition to an LLC as they grow or want extra protection and branding.

Many ICs choose an EIN to avoid using their SSN and for added professionalism when invoicing.

Highly recommended for clean bookkeeping and to support liability protection.

It varies by state, typically $50–$300 plus an annual renewal fee.

Yes, generally. LLCs offer limited liability protection, but only if business and personal finances remain separate and proper practices are followed.