Hints, tricks, or hacks for moonlighting, freelancing, or consulting work?
September 11, 2011 9:47 AM Subscribe
Hints, tricks, or hacks for moonlighting, freelancing, or consulting especially in regards to setting up a LLC and setting fees?
posted by cycleback to work & money (11 answers total) 14 users marked this as a favorite
I am considering doing a small amount of consulting work out side of my full time position. The work will be initially focused on analysis and redesign of a product. I don’t see any conflicts with my current position as they are in totally different markets. I have a few questions regarding protecting myself legally and setting billing rates.
In addition, any other hints, tricks, or hacks you can provide about moonlighting or freelancing would be appreciated.
1) If I am only doing a small amount of work per week (5 to 10 hrs) for a single company should I bother to form an LLC?
2) I would like to subcontract another individual to help me out with some of the work because of his specialization. Would I have to hire them as a 1099 contractor or can I just pay them person to person so we don’t have to deal with the 1099 forms and quarterly estimated tax payments. Is it possible to do this if the overall contract is with a LLC that I form?
3) I am having difficulty determining pricing/fee structure for one portion of the work. I will be offering take their existing design and optimize it. This portion of the work is where value will really be added. The optimization will be done in a semi-automated fashion so billing by an hourly rate doesn’t make sense to me. Ideally I would like to receive a passive income stream by licensing a new/optimized design. However, it will be very difficult to anticipate the annual rate of sales of this product as it is essentially new. I see a couple of potential options for setting up billing?
-Fee for each unit sold
-Fixed Fee + Fee for each unit sold
4) Are there any other legal structures or requirements I should look into?
5) Any other hints, tricks, or hacks you can provide about moonlighting or freelancing?