October 31, 2012 7:46 AM Subscribe
Potential freelance client wants to hire me; their lawyers say they can only work with incorporated vendors, not sole proprietors. For a variety of reasons (see inside) I'd rather not go through forming an LLC if I can avoid it. ISTR there are umbrella organizations freelancers can sign on with to handle this sort of situation, but am failing to google them up now that I need one. Potential difficulty factor: rural Massachusetts.
posted by ook to work & money (13 answers total) 4 users marked this as a favorite
Reasons for not incorporating: it would take too long, primarily (the job needs to start almost immediately). It's also an expense, and a hassle, and complicates my taxes, and -- well, I know this is irrational, but many years ago I went through incorporating years ago for a different client for the same reason and about a week later the job fell apart, which kind of soured me on the whole idea. (That LLC is long gone, unfortunately.)
I know about freelancers union, but that appears to be just for health insurance; what I need is someone I can bill through.
Extra credit question: why do legal departments do this? What's the advantage to them of working only with vendor companies, not sole proprietors? (They've told me it's only partly because of the MA independent contractor law, they'd still require this even if I lived elsewhere.)