Self-Employed Less Than 2 Years in New Jersey

Does switching from W-2 to 1099 with the same company count as self-employment?

Lenders generally treat 1099 income as self-employment, even with the same company. The fact that the work, client and pay are largely unchanged is a strong point, because it shows continuity. Bring both your old W-2s and your new 1099 records, plus anything showing the arrangement, so the underwriter can see the connection clearly.

Why does it matter that I did the same work before?

Continuity is the main way a lender judges whether new business income will last. If you did the same job as an employee, with the same skills, license or clients, your earlier work history helps support the business's short record. A move into an unrelated field leaves the lender with less to rely on, which usually makes qualifying harder.

Can a P&L help if my business is new?

Possibly. Some programs accept a P&L prepared or verified by a CPA, EA or licensed tax preparer, often paired with business bank statements, as a way to document income before a return is filed. Each program sets its own history standard, so ask whether a P&L is accepted for a business with your history and what support it needs.