I am changing nanny positions and I will have multiple families using my services. Should I request W-2 or is filing as a sole proprietor acceptable?

[mcolvin180]

This isn’t for my 2017 taxes, this is so I start my new positions in 2018 prepared.

[Carl]

Without knowing the details of your *personal* situation (which you should NOT share in this *public* user-to-user forum),  it's impossible to say. Basically, you're asking for tax planning advice. We don't give that here. You may want to talk with a financial planner or tax lawyer in your local jurisdiction.
Overall though, the IRS doesn't care which way you go. So long as you pay your taxes on our income, it just doesn't matter to them.

[mcolvin180]

Thank you for your advice!

[Critter · Accepted solution]

Since you are going to have multiple clients then you can file as a sole proprietor ... however this will cost you more in taxes than being a waged employee.   You can even be a W-2 employee for some jobs & self employed for some so you make the decision. 

[mcolvin180]

Thank you for your insight.

[Hal_Al]

If you are caring for children in your home, you are not a nanny; you are a day care provider and that is definitely self employment (sole proprietorship). If yoiu provide services in the clients home, You can be either a sole proprietor or a nanny ("household employee" in tax parlance). You should discuss taxes, up front, with each client, and agree on how taxes will be handled

[mcolvin180]

Thank you! I guess it would've been more appropriate to ask if either are illegal, which this answers that question.