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[quote=Anonymous]I had worked for the company that makes TurboTax so y'all are warming my heart with your recommendations for it! And there is a way to provide feedback and I promise you there are entire teams organized around each topic (like self-employed) that actually read and make changes based on unsolicited customer input. Doing so is ingrained into the company culture.

As for other questions - NO you do not need to set up LLC unless you will be exposing your family to liability of some sort based on advice you will be giving or assets you are putting at risk. And even if you set up an LLC you still report income as a Schedule C self-employed; you don't have to set up a separate corporate entity that files its own tax return. Many 1099 subcontractors can just report the income without incorporating. And you get smart-girl points for setting aside 1/3 of the monthly retainer for taxes (when I was consulting I had a separate banking account I called "Quarterly" just for making my quarterly payments).

However, if you - and your spouse - are still W-2 employees, you could just adjust your withholding down to only a very few allowances and let your company's payroll companies handle the transaction. Just make sure you have paid 90% of your estimated tax liability by 1/15 (the 4th quarter filing deadline) of the next year.

And keep track of all those expenses against which to offset the 1099 income (cell phone for conference calls, printer ink, wifi, parking, business cards, coffee meetings, etc).[/quote]

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