Websites:
- San Francisco Women on the Web is a non-profit organization formed to provide networking and professional development for women working in technology. Their Pricing Discussion FAQ has links to salary/rate surveys and related resources. Also, they have an email list.
- Nonprofit Technology Network is a membership organization of nonprofit professionals who put technology to use for their causes. They have regional NTEN 501 Tech Clubs for informal networking, including one in San Francisco.
- The HTML Writers Guild has a very useful How to Set Rates FAQ.
- Freelance Switch is a community and resource for freelancers of all varieties - designers, writers, programmers, illustrators, photographers, etc. Their article A Comprehensive Guide to Starting Your Freelance Career is useful (although not actually comprehensive), and there is a brief article on figuring out how much to charge.
- Escape from Cubicle Nation is a blog on entrepreneurship and self-employment which is also applicable to would-be independent contractors.
- Professional and Technical Consultants Association is a network of business and technical consultants. They provide support/resources/leads for their members.
- Non-profit tech salaries seem to range from 1/2-3/4 of corporate salaries; not sure if this also applies to contractor rates?
- Check out local professional organizations in the field
- Try calling other contractors or checking their websites for rate quotes
- Get a contract that states work terms, including terms for invoicing and payment
- Not all companies require contractors to be incorporated or hold general insurance; may depend on industry
- If contracting for the long term, outline an informal business plan - target market, competition, how you fit in
- Keep expense records for Schedule C, including mileage and home-office expenses
- Need to pay quarterly estimated taxes
- Your city may require a business license if you work in your home (rented/owned)
- May be helpful to consult a lawyer/accountant about permits, licenses, insurance, planning/setting up books
2 comments:
T. emailed me this bit of advice:
"Talk with a tax professional about the home office deduction, as it may have other implications when you sell your home."
My friend V. emailed me this extremely useful info on independent contracting:
[A large Silicon Valley] balked at my rates, claiming I was earning much more than any other contractor. I think this was a bit of theater because they always accepted my rate, even when it went up. Also, they were very bad at paying on time and at one point I nearly stopped working for them because it was taking so long to get paid...Try to get net 15 terms or shorter (the number specifies how many days they have to pay you after receiving the invoice). And remember it is a business relationship, so they'll push the boundaries as much as possible to keep money in the company.
Rates also may vary depending on the length of the contract.
I set up a LLC and kept that structure for many years, but I don't think it's worthwhile. There is paperwork and significant ongoing expenses...You can get all the same deductions without the extra paperwork operating as a sole proprietor.
...companies may require [insurance] in contracts, but may have a "don't ask don't tell" policy...
...don't forget, also, when setting rates, that you'll pay a lot more in taxes than a W2 employee -- the full social security and medicare tax instead of the 50-50 arrangement of employees.
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