- Los Angeles
- San Diego
- San Francisco
You ASKED Electra
The pros and cons?
ProsYou'll be working for yourself.
ConsYou'll be working for yourself.
Ok, that's less than you wanted to know. But it IS the bottom line. As an independent contractor you will own your own business and enjoy all the risks and rewards of being in business for yourself. You'll supply all your own equipment, keep your own books, get clients, advertise, pay taxes and Social Security, arrange for your own insurance coverage (health and all else) and much, much more.
Because there are so many factors and responsibilities involved, becoming an independent contractor requires planning and preparation on your part. You are starting a business and you need to have a plan!
Your new clients (whom you formerly called "employers") will need to determine that you truly ARE in business before they can contract with you.
There are several sites on the web that outline the issues involved. The most useful are the checklists of criteria the I.R.S. uses to determine if your relationship with the client is that of contractor or employee.
Independent Contractors FAQ
How Much Should You Charge for Your Service?
CCH Business Owners Toolkit - Independent Contractors
A great print resource is Independent Contractors: A Manager's Guide and Audit Reference from the California Chamber of Commerce. You can search your public library's catalog to see if they own this title.
To learn more about some of the challenges (and rewards) of becoming an independent contractor, spend some time looking at the articles here:
Page last updated: 11:06 PM on 5/22/09