I just recently graduated with a BS in Computer Science and I want to pursue in a career involving web development/design. My uncle wants to hire me for his little business as a TaiChi instructor and he needs to get his website redone and updated, and he is paying me via paypal for the work.
So plainly put, I have been hired and I am now employed (I’m guessing part time with very flexible weekly hours), but since this is kind of a freelance thing, I’m not sure what are all the legal things that I have to face… do I pay taxes? Should I contact some employment agency?
Assuming your uncle has not put you on his payroll and paying you as a salaried or hourly employee, then you are an independent contractor. All you need do is claim the amount of money you earn from the job as part of your income for the year when you complete your tax return.
If you want to be able to deduct your expenses, then you can register a fictitious business name (i.e., your real name “doing business as” your chosen company name). When you do this, you can deduct all your business-related expenses from your yearly income so you are only taxed on the difference.
Considering you are in the USA, you calculate your net profit or loss from your self-employment on Form 1040, Schedule C. That’s all you need in this case when you file taxes.
Just keep track of how much you getting paid for now.