Forum Moderators: LifeinAsia
A land developer approaches you to work for them on a contract basis. You were planning on being your own boss someday, so you go and file for your LLC (limited liability corporation) license. They want to pay you 40k for the first 6 months, then a 5k bonus after that to put you at 45k annual. You will have to get your own benefits pkg. for you and your family. You get paid in quarterly chunks, as to have less tax taken out....you will be working some crazy hours, but know you can handle it. The job involves some serious web design and development integrating some databases (SQL) which you know you can do.
Do you sit pretty where you are at and hope the raise is comperable to what you will get in 6 months as a contractor?
Or do you give your 2 weeks and become a contractor, get the bonus in 6 months, worry about your benefits pkg. for your family and work some crazy hours?
so in my contract it was stated that the project would take a year to complete, and the total agreed amount was X0,000 k for the year. and each month i would submit an invoice for the monthly draw amount...which was my yearly agreement divided by 12.
So, i have an amount i can count on each month, and per contract it will be set for the year.....im feeling good about the situation all together, since the past 2 days.....
i hit the ground running....already updating web crap, making graphics....etc...etc...didnt skip a beat since leaving my last job...
looking good so far...got an appt. with my CPA/Financial Advisor tomorrow...
I dont know how long that will last, but i proposed i would work for them (just until they found a replacement) on contract for 6 months.
Plust my 40 hour gig now as an IC...and i got a few side clients that need websites with like 3 or 4 pages...easy stuff.....
so its working out good so far.
i was told to not submit an invoice every month for the same amount, because the IRS would look at me as an employee
Where do you work at, on site or off? Do you have a separate company formed, i.e. a corporation or LLC? If you work off site and have a separate company the IRS would have a very tough time re-classifying you as an employee, even with steady monthly payments, how do they know it isn't a retainer? Do lawyers that charge a company a even monthly retainer get re-classified as employees? No, so as long as you generally do you work off site and have a separate company (which is a true test) I think you will be fine. I am not a CPA, so you may want to check with one.
Fortune Hunter
#1 medical insurance for private policy, is just as much as my employer was charging me.
#2 Deductions. New printer, office supplies, software applications, ...etc...etc....all write offs.
#3 I get to work from home approx. 25-30% of the time....that is worth more to me than anything...so im already ahead of the game....
***hmmmm work 40 hours away from home at an office desk, or spend an extra 10 hours working from my bed with my kids running around...?****
#4 total 5k bonus after 1 year?...ummm already making more from that.
#5 Working as an independent contractor for a 1 year project (minimum) build my reputation, network with other new home construction marketing firms, take on other side projects at night, and next year....POOF....another raise...
...and you say i will be working too hard?....crazy, im too good at what i do to work hard. Yeah, i have to mange my taxes, and keep track of s**t financially.....but cmon....just dont try to rip the IRS a new one and youll be fine....
And my last position, is contracting me for an average of 20 hours a month....another bonus check....
so you can stay in your current position...me...ill pass.
unfortunatley in america, the only way you are going to get a raise is if you #*$! jobs....employers today know that once a person is comfortable with their spot, they can keep them under their thumb with the same measly salary they were earning several years ago. 85-90% of employees dont ask for a raise or performance bonuse at their current job becuase they are scared of reprisal, and they think they are getting paid what they are worth.
Yeah, i made a temporary financial lateral move, but 6 months to a year from now ...it will pay off....
and if you dont want to work hard...then have fun at the bottom.
Im not greedy, im not vain, im not a fake person...i just want to be in charge of my own work. who wouldnt?
oh, did i mention i get work from home with my kids?....AWSOME...my family was part of my decision as well as you can see.
Im not greedy, im not vain, im not a fake person...i just want to be in charge of my own work. who wouldnt?
Well said, I am telling you from first hand experience working for yourself is highly addicting and well worth it EVEN if you weren't making quite as much cash, which doesn't sound like that is the case for you.
I just told a friend the other day that I would never go to work for anyone else again unless I was totally down and out and had absolutely no choice, which seems unlikely any time soon. They [employer] would have to offer a ton of cash to even get my attention and even then I am not sure I could do it.
Regarding the money, I had my accountant tell me that there are two sets of tax laws in this country (U.S.) one is for people that are employees and the other is for business owners or self-employed people. Want to take a guess which one has A LOT more advantages?
Fortune Hunter
