If you earn both W-2 wages and 1099 income, adjusting your withholding on Form W-4 may be beneficial to help account for taxes (ex: self-employment and income taxes) owed on your 1099 income which are not ordinarily withheld.

When you make the shift from being an employee to a business owner, you’ll want to gain an understanding of how compensation and health insurance will differ as a business owner versus that of an employee, as well as familiarize yourself with something called imputed income.