Tax Form 1099

A 1099 is a tax form that is required to report Independent Contractor earnings.  This is something you register for with the company you are working with.  An initial "litmus test" of whether a business is legitimate (or is flying the seat of their pants) is if they are requiring you to fill out and submit 1099 paperwork as a part of their enrollment process.

Statements like, "Your taxes are your responsibility and it is assumed you will do the right thing" are a red flag and simply indicates that the "deal" you are considering does not have the administrative sophistication to track and then report your earnings to you (and the government).

Therefore, if you are at the stage of trying to discriminate between "this one and that one" in terms of money-making opportunities, ask (or find out) if they provide you with a 1099.  If they do not, it is reasonable cause for concern and you should be asking if you want to hitch your wagon to their "opportunity" if you are serious about building a stable, long-term business.

In this context, and by extension, depending on your tax bracket and in doing your calculations of "what it will take" to quit your job, take 25-30% off the top for taxes.  Start saving all of your receipts, and begin considering that if you have not done it before, you may want to be filing a 1040 long form - like a real business.

Here's why:  if your mindset is in the right place, you will be running a real business that will legitimately provide you with the earnings that will require leveraging tax advantages.