“Employees” works a set number of hours scheduled by the employer, they receive paychecks that have taxes and other deductions taken out. At the end of the year, they receive a form called W-2. On the other hand, “independent contractors” set their own number of hours, get paid salary with no taxes withheld and at year end receive a form 1099.

Yes, a personal business is called a “Sole Proprietorship”, and the income earned is reported to the Internal Revenue Service through specific tax forms.

Yes, the rule is that all income must be reported at the end of the year by filing your annual income taxes, there are no exemptions.

Yes, by filing the annual income taxes and applying at the same time for an “Income Tax Identification Number (ITIN)”

Incorporating a small business can help establish a professional identity. By incorporating a small business, owners can separate and protect their personal assets. Incorporating a business allows owners to have limited liability regarding business debts and obligations. Of course, there are several tax benefits that also come with incorporation.

Every serious business must have a payroll system in place. The most important reason is to contribute to your social security fund in a regular basis, so as to have a bigger pension income at your retirement. The second reason is to show the Internal Revenue Service the amount you earned in a year and received help from the government, should you needed it.

The most popular are: Sole Proprietorship, Partnership, Limited Liability Company (LLC), Corporation “S”, and Corporation “C”. See more details on the web site.

First of all, buying a home is the biggest investment that you will make in your life time. Secondly, buying a home creates a Loan and its payment carries interest which is deductible in your annual income taxes. In most cases, mortgage interest paid provides the biggest personal deduction, which in turn causes a reduction in tax liability. Owning a home is a win- win proposition.

Yes, with a more than 20% as down payment. Banks and lender have their own rules and requirements and they handle it in a case by case basis. It is wise for foreign investors to have a local business adviser who knows the appropriate business law to be apply in every business transaction.

Yes, the minimum requirement is to be in business for more than one year, have some experience in running a business and have a business idea to take it to the world of commerce.