Someone wants to pay me to do stuff! Only I'm not really sure how to go about it. Now what?

October 11, 2008 6:46 PM

Someone wants to pay me to do stuff! Only I'm not really sure how to go about it. Now what?

So I have a portfolio-ish website for creative services I (sort of) offer. It mainly was a hobby, nothing I really ever expected to profit from. I have done a few jobs as favors for family/friends, and I didn't charge them anything (they took me out to dinner, paid the material costs, etc.)

I just started a new job, and in the interview process, one of the key things that sold them on me was my portfolio (the work is somewhat related to some aspects of my new job.) New job doesn't have any problems with me doing creative jobs on the side as long as they aren't during company time/with company equipment.

In the standard "welcome to the company" email that my boss sent out to the whole company, he linked to my portfolio site (with my permission), and much to my surprise, shortly thereafter I got an inquiry from someone within the company possibly wanting to use my services. He asked for a price list, and I am writing one up now (never had the need for one before, oops!)

As I am thinking this is more of a once or twice a year kind of thing, I really don't want to go through the whole hassle of becoming incorporated, etc., etc. I kind of view this as a fluke.

However, I definitely don't want to be seen (by a co-worker) as someone who deals under the table, so I want to be as professional as possible about the whole situation.

So...what do I do? Specifically I am thinking about how I would handle sales tax or invoicing, etc. Or should I just say, it'll cost you $XX and have them write me a check and be done with it? I just want to be careful that word doesn't get out around my company that I'm not following "the rules" of small business or whatever.

Thanks for any advice you can offer!

posted by anonymous to work & money (4 comments total)

I don't usually do price lists -- that implies flat rates for things, and it's usually smarter to charge an hourly rate and give estimates (that you can exceed if the customer gets picky or starts to ask for things that are outside the scope you're working in) in creative businesses. I also bill progress payments on a monthly basis, since "simple" projects in web space have a way of getting complex and "No, more like THIS" ... "Wait, I liked it better the first way" in a hurry.

I will generally give an estimate for the project, with a "do not exceed" ceiling. But I'm also far more of an interactive PHP programmer than just an HTML/design monkey.

We can't help you as far as sales tax goes since you're anonymous. Sales tax, income tax, and many other things vary on a state by state (and country by country) basis, so without knowing where you are, all we can really say is "check with your state government." In my state, all I had to do was obtain a sales tax certificate and the rates I needed to charge on various services. As far as federal US income tax goes, if you are expecting a refund you don't need to file anything extra 'cept a 1040 Schedule C when you file your taxes in April. If the amount is significant, i.e. >= $5,000, then you will probably want to file a quarterly return and pay estimated social security and income tax on the balance.
posted by SpecialK at 7:03 PM on October 11, 2008

one quick note: sales tax can be state AND local gov't, not just state.
posted by Pants! at 7:47 PM on October 11, 2008

"creative services" is a very wide field but I, too would flatly recommend to not ever do work on a flatrate without a complex contract. it only means that they will come back over and over again with changes because those don't cost anything more.

quote them a price for specified steps. if you are unsure how much you want to charge or what is appropriate, a book like the Graphic Artists Guild Handbook: Pricing & Ethical Guidelines may help.
posted by krautland at 11:43 PM on October 11, 2008

Ask him what work he wants you to do and give him a quote for it. Noone asking for a price list is really all that committed to making a purchase.
posted by MaxK at 5:24 AM on October 17, 2008