Congrats on starting your business and moving into contract work! Filing jointly with your wife as a W-2 employee is usually beneficial as it can lead to lower tax rates, but it depends on your specific financial situation. You’d still use the same 1040 form if you choose to file jointly. If you file separately, you’ll also use a 1040, but you may lose some benefits available to joint filers. It’s a good idea to consult with a tax professional to determine the best option for you.
As for contract work, using your business and EIN can help separate your personal and business taxes, offering better tax deductions and limiting your personal liability. On the other hand, using your SSN might simplify things if you’re just starting out, but could have fewer tax benefits.
Regarding your new business, you’ll need to pay self-employment taxes and make quarterly estimated tax payments to both the federal government and your state (although Washington doesn't have a personal income tax, there could be other obligations). Again, working with a tax advisor would be helpful to ensure you're compliant with all requirements.
By the way, if you're managing inventory in your business, you might find this guide on [removed] useful. It can help streamline your warehouse management, especially as your business grows.
