[AccessD] OT Got it: Was... Rate for first time

Software Design & Solutions Pty Ltd. SDSSoftware at Optusnet.com.au
Wed Apr 2 17:27:20 CST 2003


Just on that note, Charlotte. One of the biggest advantages of forming a company (proprietary limited) in my view was that according to advice from my accountant, should I be sued then my company's assets would be under fire, not my personal ones. It may be different in the U.S.

Kath
  ----- Original Message ----- 
  From: Charlotte Foust 
  To: accessd at databaseadvisors.com 
  Sent: Thursday, April 03, 2003 6:44 AM
  Subject: RE: [AccessD] OT Got it: Was... Rate for first time


  You don't have to be incorporated for most contracts.  All they want is
  an actualy entity, rather than a private individual, and a registered
  fictitious name (dba) serves that purpose.  With a dba, all you need is
  your personal tax id number.  You don't need a different taxpayer's ID
  unless you have employees.

  Charlotte Foust

  -----Original Message-----
  From: MartyConnelly [mailto:martyconnelly at shaw.ca] 
  Sent: Wednesday, April 02, 2003 11:09 AM
  To: accessd at databaseadvisors.com
  Subject: Re: [AccessD] OT Got it: Was... Rate for first time




  Hollis,Virginia wrote:

  >Well I got it for 60.00. The only thing, they said I would either have 
  >to get a tax number or go through a temp agency. Well everyone knows 
  >what happens when you go through an agency... I would end up with 
  >probably 30 of that.
  >
  >So, how do I go about getting a tax number?? Is there anything else I 
  >would need to do?
  >
  >Virginia
  >
  >  
  >
    Hmm a temp agency should take no more than 15 to 20 % for 
  administering a contract.
  Years ago I could get it for 10%, so shop around, I remember getting it 
  for as low as 5%
  when I had to get my contract assured under a government master standing

  offer..


   Generally there are 3 major steps to take
     1. Either incorporate your self or form a limited liabilty
  partnership
         (can be a partner of one). Takes a week. If  you set your self up

  as a
         numbered coporation it is quicker. They dont have to do a name 
  search,
         if you decide to name your corporation as Virginia Hollis & 
  Associates.
         Once you have incorporated or whatever level of business is
  allowed
         in your state you go to step 2
     2 Take your State assigned incorporation number to a bank and open a
         Business or  Commercial Account.  You will have to show a 
  physical letter
         with the number. Takes a couple of days.
     3. Take your Bank Account and State Corporate Account number.      
          and get your various tax account numbers from state and federal
          authorities (This is fairly straight forward unless you are 
  hiring other people
           then you get into withholding taxes.) Could be a week (who
  knows?)

     Things to consider:
         It will cost you more to fully incorporate say 500 to 700 dollars
         I do it cheap (have a kid brother who is a lawyer). In Alberta 
  you can
         incorporate online (just fill in the forms). They will even UPS 
  your minute books
         and corporate seal. Fully incorporated, you have less liability, 
  a limited
         partnership may leave you open to a legal suit where your house 
  may be up for
         grabs. So you need Business Insurance or E&O (Errors and 
  Ommissions) insurance.
         I don't know rates in US, in Canada its about a 3 - 5 hundred 
  dollars a year per million
         depending on your business. At least you don't need K&R insurance

  from Lloyds at
         3000 a month per million ;)

         You will probably want to hire an accountant who will do your 
  taxes and books, don't
         skimp on this, in fact he can probably advise you on the best 
  form of incorporation
         for your situation and what intial steps to take. Also he will 
  tell you whether it is
         better for your corporation to pay you via monthly dividends or a

  direct salary (which
        may mean withholding taxes, unemployment insurance (more forms) 
  etc depending
         on your state.

         You can probably sign your contract saying your government 
  assigned numbers
         are pending. Knowing how long some companies will take to pay an 
  invoice,
         some can be longer than 90 days,  you will probably be okay.  If 
  this is a problem
         you might want to amend you contract to a shorter time frame once

  you have had
         a lawyer look at it. Discuss this before you sign. I have done 
  3'd party subcontracts
         to IBM where it has taken more than 6 months to be paid. If this 
  is the case you may
         want to establish a good line of credit with your bank. You will 
  not get this for your
         business for 2 years and established a banking  record and have a

  written business plan,
         so it will have to be personal line of credit.

         I might be inclined to say go the temp route intially if your 
  finacial situation is such that
        you don't have several months salary in the bank as a nestegg.

      Take this with a grain of salt because I am speaking from a Canadian

  perspective.       


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