IT Contracting in New York
Guys,
Can anybody point me towards good information on how you can go IT contracting in the US? I am working full time now and I am thinking about going contracting like I used to in the UK and just need to know what is involved. Thanks!! |
Re: IT Contracting in New York
What is your current immigration status? L-1?
|
Re: IT Contracting in New York
Originally Posted by pcuz
(Post 8786021)
Can anybody point me towards good information on how you can go IT contracting in the US?
Ian |
Re: IT Contracting in New York
Originally Posted by ian-mstm
(Post 8786306)
You would need permission from the US government to accept IT jobs in the US... but, if you are already in the US on an employment-based visa, you can work only for your US sponsor and can't contract out your services.
Ian |
Re: IT Contracting in New York
Originally Posted by pcuz
(Post 8786021)
Guys,
Can anybody point me towards good information on how you can go IT contracting in the US? I am working full time now and I am thinking about going contracting like I used to in the UK and just need to know what is involved. Thanks!! The only other thing is that if you want to protect yourself from lawsuits (possibly even from bills if the company goes bankrupt and bills were in the name of the company), you could set up an LLC or a S type corporation. |
Re: IT Contracting in New York
Originally Posted by Michael
(Post 8786394)
you could set up an LLC or a S type corporation.
Originally Posted by pcuz
(Post 8786333)
I am a perm resident so thats not a problem. More intrested in setting up a company etc and all that stuff...
YMMV |
Re: IT Contracting in New York
Hi, I am an IT contractor in San Diego.
It is complex, the law is different in each state and it changes annually. So my best advice is to find a CPA (certified public accountant) and discuss which type of trading entity to set up and then arrange company formation with them. The type will depend on whether you are a sole trader, you ever want to employ others, your anticipated gross turnover, where you will trade, whether you will provide just services (time) or sales of goods (software). Note that the papers to set up my company in California needed to be executed in the state capitol (Sacramento more than 500 miles away) more or less by hand! I operate via an LLC registered in California (Limited Liability Corporation), but did consider registering in other states as my agent is based in GA, but I found it is actually best to register near your residence. I did review alternatives to LLCs, but in conversation with my CPA, he advised me of likely upcoming changes to legislation (like 200 pages of it), weekly bulletins containing new interpretations, and many many other factors. In the UK, I would simply review most of the rules for myself, learn about IR35 from online websites and instruct my accountant on what to do. Here, it is completely the other way around. There is no way I would have time to learn or keep up to date with all the Federal and State regulations. So my CPA does this for me. You'll need liability and indemnity insurance and may, depending on the state and size of company require Workers Comp. There are Federal and State forms to complete, I found quite a lot of help on these online. What you will need out of the process is your business Federal Tax ID, which is the EIN. This will allow you to open a business bank account and start working and invoicing. Then you get a contract, start working, do your time/expense submission, invoicing and your company gets paid. My other advice is that you need to take responsibility for ensuring that all of the people in these processes know what they are doing, have actually done it to the point where there is nothing more to do, until you are confident they have been trained lol. In my case, expenses would sit in an email account with no one assigned to review and approve and so on. So you'll need to email and chase. Now that all those in my process have been trained, I don't have to chase any more and my timesheets and expenses get approved on the weekend! The main upside for me is that I can take as much vacation as I want, although unpaid. I'd been headhunted to Cali several times in the past, but never could get past the 2 or 3 weeks of vacation barrier (I need at least 6 lol). Contracting allows you to be in control. Don't forget your health insurance and to maintain detailed records of every expense. There are a lot of deductibles - your CPA will supply details of what's allowed. Good luck! Rich, San Diego, CA |
Re: IT Contracting in New York
Originally Posted by tallstar
(Post 8790558)
Hi, I am an IT contractor in San Diego.
|
Re: IT Contracting in New York
Originally Posted by GeoffM
(Post 8790829)
Useful for me too - thanks!
Also there really isn't any major tax advantages of an LLC or an S corporation since you are taxed as if you are self employeed. My son set up a LLC because he and two partners had a office and when they closed down, they were able to discharge the contract for the office lease and internet and phone contracts against the LLC (they got those companies to write the contract against the LLC). However they got stuck with the debt for the credit cards and leases on computers since they could only get those if someone signed a personal responsibility for those items. |
Re: IT Contracting in New York
Originally Posted by Michael
(Post 8790989)
If all you are doing is contracting yourself out to write programs or other IT services, what possible liability could you create
But in any case, Rich's and your information is useful in general, not specific to my situation but closely related. |
Re: IT Contracting in New York
Originally Posted by GeoffM
(Post 8792078)
That all depends on the field you work in and what the contract says. Games, probably not;...
|
Re: IT Contracting in New York
Originally Posted by GeoffM
(Post 8792078)
That all depends on the field you work in and what the contract says. Games, probably not; safety related or, even worse, safety critical stuff, a huge amount of liability.
But in any case, Rich's and your information is useful in general, not specific to my situation but closely related. Normally there isn't a problem getting the protection if the contract is on a document with the company letterhead since the employee signing the document is assumed to be a representative of that company and the person getting the services assumes they are hiring the company to perform the services. |
All times are GMT. The time now is 9:43 pm. |
Powered by vBulletin: ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.