Independent Contractor ??'s

whistler

I have a offer to do some independent contracting, may lead to more in the future, for my current boss's side company.

What I am trying to find is a good resource for learning how to setup and correctly handle being a independent contractor.

Any resource or suggestions would be appreciated.

Thanks in advance.

astorrs

A subject close to my heart (9.5 years as an independent consultant/contractor)...

Do you have an accountant? That would be your first call, they will be able to tell you the taxation rules in your particular place and what the best model for *you* would be.

Once you know the tax/legal why/how's you can get a company in place (either incorporated or proprietorship - based on the previously sought advice). Check with your local chamber of commerce if you don't know the process they can probably point you in the right direction (I'm in Canada and don't want to give you advice that wouldn't apply in the US/overseas).

You may need to look into job safety regulations (OSHA, WCB, etc) to see if they will apply to you as an independent.

There are lots of things to consider, if you give us an idea of where you are in the world maybe I can find some specifics for you.

whistler

The job is described as "Tech on Retainer" and is a additonal service of a business that already exists. I have worked for my current boss for 21+ years, which due to a company wide layoff will end December 31st, so I am comfortable working with him.

I am in New York and currently the offer is 1 hour in person Q/A per client per week for a fee to me per month with a additional hourly rate if more is time is needed. So far there are 2 clients with more possible.

I figure I will need to setup at least a seperate bank account and that the hourly fee after taxes etc. will be about 1/2 of whatever rate I recieve.

I don't know how far this may go. I mayn't be a good fit for the job.

Thanks.

astorrs

So will you be a subcontractor to your boss' company? or a contractor directly to the end clients? (i.e., who pays your invoice)

eMeS

I highly recommend Million Dollar Consulting by Alan Weiss.

http://www.amazon.com/Million-Dollar-Consulting-Professionals-Practice/dp/007138703X/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1211505336&sr=8-1

Although you may not be ready to implement much of what he discusses until your business grows, his thoughts are good for getting your strategy right. Also, he stresses that the focus should always be on results, which is a bit of Kool-aid that everyone should drink...

This book really opened my eyes and took me in an all new direction professionally....

MS

whistler

I will be a contractor to my boss's company and he will bill the client and then pay me the contracted amount.

eMeS - thanks for the book recommend.

whistler

Thanks for the help.

I started reading the IRS's requirments for a Independent Contractor versus a Employee and realized that the proposal sounded more like a employee/emplyer relationship than a Indepdent Contractor/Contractor relationship. So I suggested my boss check out the IRS documents and he agrees. So it appears this maybe a simple emplyee/employer job. Now I got to suggest he check with his accountant about the $ offer he made. It sounded to high based on the original offer which wouldl have included me paying the taxes.

Okay so I am nuts to try and talk a job offer down.