Shaun Hummel asked:
Overview
This article discusses some of the considerations involved with self employment. There are alot of opportunities for information technology workers to start their own business. You can decide to start it as a part time venture and gradually build the work and phase out of a current opportunity or do both.
1099/Corp to Corp/Taxes
You have to pay taxes whether self employed or as a standard w2 employee. The contractor can work as a 1099 status or as an incorporated business. The 1099 is a self employed status and has specific IRS rules that determine if your relationship with the employer is indeed as an independent contractor. The 1099 status requires you to file a 1099 schedule during tax time and all liabilities of the business are yours. The taxes with 1099 involve self employment and income taxes. Working as a Corp to Corp requires you incorporate the business and there is a cost involved with that. From the perspective of the IRS you are a corporation and not a self employed individual. There is no self employment tax, however you should consider the complexities of tax laws in your state and consider and decide what is best for your business.
Health Benefits
Working for yourself will require you to shop around for your own health care benefits. Web sites such as ehealthinsurance can generate a list of providers with plan specifics and costs.
Finding Work
Searching for work can be daunting however there are some good places to focus your efforts. Start with contacts you have made over the years working for clients and let them know you are now available and working as a contractor. Have some basic information you can provide that specifies previous work experience and samples if available. There are some good job search engines such as careerjet.com, smuz.com and indeed.com that aggregate opportunities from several sources. Freelance web sites such as Elance, Scriptlance and Getacoder advertise a lot of opportunities that could match your skill set. Setup a company web site and specify on any job boards you work Corp to Corp or 1099 status. Local advertising in free online classifieds is a good idea and joining local community networking groups.
Billing
There are some companies that do payroll online as an outsourced service if you dont want to do any billing, taxes or financial statements. It is easy enough to get a basic accouting package online and learn to use it if you have basic computer skills and do your taxes online.
Career Development
Keeping your technical skills current is key and the best way to do that is with certifications. Plan on doing a certification that supports your business plan and market demands every 6 months.
Contracts
Most contracts with the information technology industry involve non-disclosure agreement, work scope, penalties for contract default, payment plans and intellectual property rights. Read carefully and confirm you are not signing away rights.
Advertising
The best advertising is customer testimonials from previous work you have done. Your reputation is valuable and a great selling point when competing for a contract. Include samples of previous work accomplishments.
Shaun Hummel is an author of various technical books and has a web site focused on information technology job search solutions and certifications.
http://www.networkjobsolutions.com
dedicated sql server
Overview
This article discusses some of the considerations involved with self employment. There are alot of opportunities for information technology workers to start their own business. You can decide to start it as a part time venture and gradually build the work and phase out of a current opportunity or do both.
1099/Corp to Corp/Taxes
You have to pay taxes whether self employed or as a standard w2 employee. The contractor can work as a 1099 status or as an incorporated business. The 1099 is a self employed status and has specific IRS rules that determine if your relationship with the employer is indeed as an independent contractor. The 1099 status requires you to file a 1099 schedule during tax time and all liabilities of the business are yours. The taxes with 1099 involve self employment and income taxes. Working as a Corp to Corp requires you incorporate the business and there is a cost involved with that. From the perspective of the IRS you are a corporation and not a self employed individual. There is no self employment tax, however you should consider the complexities of tax laws in your state and consider and decide what is best for your business.
Health Benefits
Working for yourself will require you to shop around for your own health care benefits. Web sites such as ehealthinsurance can generate a list of providers with plan specifics and costs.
Finding Work
Searching for work can be daunting however there are some good places to focus your efforts. Start with contacts you have made over the years working for clients and let them know you are now available and working as a contractor. Have some basic information you can provide that specifies previous work experience and samples if available. There are some good job search engines such as careerjet.com, smuz.com and indeed.com that aggregate opportunities from several sources. Freelance web sites such as Elance, Scriptlance and Getacoder advertise a lot of opportunities that could match your skill set. Setup a company web site and specify on any job boards you work Corp to Corp or 1099 status. Local advertising in free online classifieds is a good idea and joining local community networking groups.
Billing
There are some companies that do payroll online as an outsourced service if you dont want to do any billing, taxes or financial statements. It is easy enough to get a basic accouting package online and learn to use it if you have basic computer skills and do your taxes online.
Career Development
Keeping your technical skills current is key and the best way to do that is with certifications. Plan on doing a certification that supports your business plan and market demands every 6 months.
Contracts
Most contracts with the information technology industry involve non-disclosure agreement, work scope, penalties for contract default, payment plans and intellectual property rights. Read carefully and confirm you are not signing away rights.
Advertising
The best advertising is customer testimonials from previous work you have done. Your reputation is valuable and a great selling point when competing for a contract. Include samples of previous work accomplishments.
Shaun Hummel is an author of various technical books and has a web site focused on information technology job search solutions and certifications.
http://www.networkjobsolutions.com
dedicated sql server
Posted in