types of self employment (most used) [Archive]

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philip

09-28-2006, 08:14 PM

I notice a number of us on the site are self employed, what capacity are people working under is it - a corporation, partnership, sole proprietor, portable company something else.....

mika

09-29-2006, 09:04 AM

I have a Corporation. I read some postings here and I have the same problem - I have one client...

scotchandsoda

09-29-2006, 12:21 PM

I am a sole proprieter but my clients won't pay me through this setup, any advice for getting round this ?

contractor

10-02-2006, 08:04 AM

I am a sole proprieter but my clients won't pay me through this setup, any advice for getting round this ?

When I started to work on contracts I had a sole proprietorship but after a few months I registered a Corporation.
I would advise you to register a corporation.

philip

10-02-2006, 12:26 PM

Sole proprietor is ok for some types of work, but you will find that most clients will need you to be an employee, a corporation, part of a larger sub contracting group or portable company, like payprodirect, who invoice on your behalf and then pay you minus the admin and service fee about 5%. It might be worth trying this before you go to the expense of a corp. in addition you better check if your clients will pay a single person corp. many of them wont.

contractor

10-02-2006, 01:22 PM

Thanks for the tip Philip but I find 5% commission a little bit too much...

philip

10-02-2006, 01:28 PM

Then you will love this, they offer a guarantee that if they don’t increase your net pay they won’t charge you. Better than working through an agency and them taking 20%plus.

RSTech

11-03-2006, 03:48 PM

I'm set up as a partnership and it has worked out fine so far.

philip

11-03-2006, 04:46 PM

partnerships are a little different when rev can looks at them but, you still have to be able to demonstrate that the client company is not as revcan see it your employer, and this can be hard to do if you work with them for over 9 months, or for 70% of your working time, or if they direct you in any way. i can send you a link to the test if that would help. The problem can come about at any time and they can go back years, as can be seen by some of the other threads on this forum.