W1099 vs W2
This should be thought as being a business decision, as the 1099 route is a business to business relationship. As a consulting business owner of nearly 30 years’ experience, I can tell you the strategies of being an independent contractor.
However, the question really should be why this route should be chosen, because as an independent contractor, you will have no protection under employment laws!
If you are going to do this, then you should treat it as a business. You will need to decide if you will incorporate, form an LLC, or be a sole proprietorship for the structure of the business. You will need an accountant, preferably a CPA who is also an enrolled agent with the IRS to keep your books and do your taxes. You’ll also need legal advice on which business structure to utilize. You’ll also need to SAVE 25-30% of your income for taxes and for your cost of doing business. Finally, there is the matter of insurance, both professionally and, personally. If you are an independent contractor, chances are good that you will not (although they will) have liability insurance coverage or protection.
In the end, an FBO or flight school that wishes to hire a new flight instructor as a contractor with wages being reported via W1099 is just seeking to shift their costs of doing business away from themselves and onto the contractor.
If they are paying $40-50 / hour, it may be worth it for you to do it. Otherwise, I would suggest staying away from this business to business relationship.
Feel free to message me and I can send you the step by step worksheet that we give to our new consultants to help sort their way through setting up their small business.
Gumby