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You need to incorporate. You can't write it off as a 1099 contractor. You CAN write it off as an employee of an LLC.

There's a lot of other good reasons to incorporate as well. Use an S-corp election (as an LLC) and you can get out of paying the SE tax on a significant portion of your income. There are some limitations and you need to bill over a certain amount, but anybody who makes a six-figure income consulting should be doing so under an LLC, not as a 1099 contractor.



Actually, you can deduct health insurance expense as a self-employed (1099) filing a Schedule C, or as a member of an LLC, or as a member of an S corp.




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