Re: How to become a "Contractor" not a "Sub-Contractor"

[Peter <pnewman1 -at- home -dot- com>]

Replies in-line to those comments that I think need elaboration.

Andrew Plato wrote:
> 1. Form a corporation.

A limited liability company, if permitted in your state will permit you
to have the tax advantages of a sole proprietorship but give you the
liability protection of a corporation. You should consult with a
business lawyer near you. Make sure that you use a business lawyer
rather than one who specializes in the accident cases.
 
 
 
> 8. Defend yourself legally. With an agency between you and the client,
> your legal risk is minimal. Without the agency, you're exposing yourself
> to lawsuit.  One blown project could wind you up in serious debt.

That is precisely the reason why you should have your LLC as a layer of
insulation between you and a potential lawsuit. Despite the fact that
you may properly be conducting your business as an LLC or as a
corporation, the Company may still try to sue you as an individual. Even
if you are successful in the lawsuit, you may find that you have paid
horrendous legal fees. You can provide good protection against potential
legal expenses and liabilities by updating some form of errors and
omissions insurance. Consult with your local insurance broker. You may
find the cost is not that great, compared to your peace of mind.
Sometimes this type of insurance is based upon you a dollar volume so
that when you a first starting out the cost of your policy will be
significantly less than later on when you start to make a lot of money.

> 11. Differentiate yourself. Why are you better than Hall Kinion. What can
> you do that they can't. Clients need to understand why they should hire
> you (a small company) rather than a large, respected agency.

Get thee to a library. Immerse yourself in books about those who have
started a successful business. Look for inspiration for some area that
you truly feel comfortable in and market yourself as a specialist in
that area. Do not do this to the extent that only that area is your
specialty, but rather as a generalist who also has expertise in that
particular area. Hopefully, your chosen area of specialty will be one
that is in demand within your market sphere. If you are truly an
entrepreneur, this will not happen by accident.

> It isn't easy. If 60+ hour work weeks are not appealing to you, I wouldn't
> recommend going at it alone. Stick with agencies. 

Why such a short workweek? 

-- 
Peter
Mailto:peternew -at- optonline -dot- net

Adapting old programs to fit new machines
usually means adapting new machines to
behave like old ones.

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