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How much to charge for consulting work?

Started by Monsterlover, September 21, 2011, 07:29:28 AM

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Monsterlover

#30
January 14, 2012, 08:59:33 AM
Quote from: The Architect on January 14, 2012, 08:49:10 AM
It's good to be self employeed.    [bang]

It is.

And even if it does actually shake out to $45/hr that's a bunch more than I ever made working for the man.
"The Vincent was like a bullet that went straight; the Ducati is like the magic bullet in Dallas that went sideways and hit JFK and the Governor of Texas at the same time."--HST    **"A man who works with his hands is a laborer.  A man who works with his hands and his brain is a craftsman.  A man who works with his hands, brains, and heart is an artist."  -Louis Nizer**

The Architect

#31
January 14, 2012, 09:20:48 AM
Quote from: Monsterlover on January 14, 2012, 08:59:33 AM
It is.

And even if it does actually shake out to $45/hr that's a bunch more than I ever made working for the man.

Yes it is.

It gets frustrating when you only have 5 billable hours some weeks........


But you don't hear me complaing when I leave work early on Friday's to take my kids skiing.    ;)

What's frustrating is the math.

ducatiz

#32
January 14, 2012, 09:32:33 AM
Quote from: The Architect on January 14, 2012, 08:49:10 AM
It's good to be self employeed.    [bang]

Set up an LLC, include your spouse or a friend so you don't get "disregarded entity" status with the IRS.

Make yourself an employee.

Carve out a section of your house for an office.

Put all your business expenses, etc under the LLC, rent, etc.

Voila.
Check out my oil filter forensics thread!                     Offended? Click here
"Yelling out of cars, turning your speakers out the window to blast your music onto the street, setting off M-80 firecrackers, firing automatic weapons into the airâ€"these are all well and good. But none of them create a merry atmosphere of insouciance and bonhomie quite like a revving motorcycle.

Monsterlover

#33
January 14, 2012, 09:35:38 AM
Pretty much exactly what we did. Except I'm not an employee.  So far.

Quote from: ducatiz on January 14, 2012, 09:32:33 AM
Set up an LLC, include your spouse or a friend so you don't get "disregarded entity" status with the IRS.

Make yourself an employee.

Carve out a section of your house for an office.

Put all your business expenses, etc under the LLC, rent, etc.

Voila.
"The Vincent was like a bullet that went straight; the Ducati is like the magic bullet in Dallas that went sideways and hit JFK and the Governor of Texas at the same time."--HST    **"A man who works with his hands is a laborer.  A man who works with his hands and his brain is a craftsman.  A man who works with his hands, brains, and heart is an artist."  -Louis Nizer**

ducatiz

#34
January 14, 2012, 09:39:13 AM Last Edit: January 14, 2012, 09:44:12 AM by ducatiz
Quote from: Monsterlover on January 14, 2012, 09:35:38 AM
Pretty much exactly what we did. Except I'm not an employee.  So far.


as an employee, your LLC will pay the payroll taxes which then become a business expense (as does the overhead of preparing them) so you get a marginal bump because you aren't paying out of your personal income.   

also, with an LLC, the LLC can pay for company training which is deductible of course, but if you're a W2 of that company you can separately deduct items like "required uniforms" "training" travel, etc.  You don't get a huge amount for that off your W2, but if you are an SMLLC (single member) or you are just 1099 from an employer, then you can't take the 1:1 deduction off the top like an LLC can and then take others like "required uniforms."

and since you own the LLC, you can state whatever uniform requirement you want, but bear in mind it has to be something 'not suitable for everyday wear.'  required uniform cost may also include deducting cleaning costs.  It is arguable that an outfit with a company logo is not suitable for everyday wear because it is advertising for the company.  no one has tested that though.. :-)



Check out my oil filter forensics thread!                     Offended? Click here
"Yelling out of cars, turning your speakers out the window to blast your music onto the street, setting off M-80 firecrackers, firing automatic weapons into the airâ€"these are all well and good. But none of them create a merry atmosphere of insouciance and bonhomie quite like a revving motorcycle.

Monsterlover

#35
January 14, 2012, 10:20:40 AM
[thumbsup]
"The Vincent was like a bullet that went straight; the Ducati is like the magic bullet in Dallas that went sideways and hit JFK and the Governor of Texas at the same time."--HST    **"A man who works with his hands is a laborer.  A man who works with his hands and his brain is a craftsman.  A man who works with his hands, brains, and heart is an artist."  -Louis Nizer**
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