Got a gig hopefully doing freelance work for a local business. As-needed basis. Mostly software support, some hardware, and some consulting (what to buy).

Ive never done consulting for a business, only friends, students, and associates. Any legal stuff I should do up? I fully intend to sit down and get it written on prices, and issues i have (they supposedly have a bunch infected, which i fully recco nuke and rebuild, but if they want them recovered, i make no guarantee). I figure if they want network stuff done, since im certed for that, I have to cover my ass, but the rest, its cavat emptor as Im not, but Id still rather not get dragged into court.

From their contact bit, they sound kinda desperate, but also wanting to get on the cheep (posted on campus asking for students only). Doing my research now on prices around the area for work, to offer a comparison.

Any other thoughts?

for the record, I take pay in steak

1/18/2009 11:54:58 PM

if you make less than about 6k a year from this gig, just do it as a 1099 independent contractor and file as self employed.

if you make more than 8-10k a year from this, form a business (s-corp or LLC) to offset the tax burden.

Figure out your pay schedule. What makes sense? Hourly, or monthly retainer? If they want hourly billing, you need a contract up front for how approval of work will go, and for what purposes. If they put you on retainer, you need a contract with the hourly monthly limits to the retainer, overtime charges et al.

Either way you need to put together how they will handle equipment purchase, whether you will buy things through them, or they will reimburse you for purchases (and the terms either way).

I wouldn't touch this for less than 20 an hour gross pay. Anything less than that and you are getting shitted on as an independent contractor. After taxes and individual benefits, that comes to about 10 bucks an hour if you were working full time for a decent company.

1/19/2009 5:16:16 AM

just based on the fact that they posted this on campus, only looking for students, it sounds like they are very cheap in a bad way and may try to take advantage of you. In situations like that you have to stick to your guns and not let them try to sway your recommendations and billing.

There is a saying that goes like "If you think a professional is expensive, try hiring an amateur!"

As Noen said, you should come up with a very basic contract (it could be 1-2 pages) that outlines what your rates are, and what your response time is. For example, say that you will commit to a response for any critical issues within 4 business hours, or next business day. No matter what you think is reasonable, you should put it in writing so that the customer doesn't set their own expectations.

Also the contract should specify exact payment terms. For example, you bill them on the 1st and 15th of the month with a written invoice. Payment is then due in 10 days.

A monthly retainer may be the better way to go -- it guarantees you some money every month for the hassle of them having your cell phone # and also puts the burden on you to get things done as quickly and efficiently as possible. The typical break-fix gigs basically motivates the computer consultant to have as many computer problems as possible so that he gets to bill more. With a retainer you are getting paid for them NOT to have problems. However you should first bill them for an initial evaluation and a price up front for getting their PCs rebuilt without spyware.

You mentioned software support - if that means providing training, then hourly is definitely the way to go.

[Edited on January 19, 2009 at 8:55 AM. Reason : sadfasf]

1/19/2009 8:54:17 AM

Damn you guys are good. I hadnt even thought of the tax bit. Thanks a bunch.

Im gonna sit down with the here later this week and get an idea how their stuff is. Retainer is something to think about, esp with what they want I think. Because of response times, its better in the long run.

Hrly is how its being done. Want to see what they offer but Im thinking about 30. One pro site around Raleigh I pulled wants 90, so ya. All parts they get, plus some charges if I have to run to TD or somewhere to get.

Noen, you a lawyer? As you have everything down. Benefits, I dont care so much about. Taxes though ya. I doubt though Ill make more than a couple grand with this.

Payment terms, I probably figured when services are rendered. If its a mass amt of calls a month, then ya orderly billing is the best thing to do.

With training, that I have to talk to them. They dont say it, but they need it. Best way to stop something is with the user. Cuts out my middle but saves me some frustration, as well as coming from them.

1/19/2009 9:25:57 AM

Quote :

"I probably figured when services are rendered"

eh, kind of doubt they'll do it this way if you mean that they pay you the day that you do whatever work. 10 days is pretty fast so i'd shoot for that or maybe a week

1/19/2009 10:07:46 AM

Quote :

"for the record, I take pay in steak "

?

1/19/2009 10:36:52 AM

can you pay taxes on steak.

1/19/2009 11:20:20 AM

general question about freelance work: where are good places to look for web freelance work?

1/19/2009 4:37:14 PM

use your network if possible. or maybe craigslist

stay away from guru.com and other freelance sites. typical requests on there are like "i want somebody to build me a facebook competitor for $150"

1/19/2009 4:44:22 PM

Not a lawyer, but I've did the IT consulting thing for years in various capacities. mellocj has good advice, definitely make sure your payment terms are very clear.

^^web freelance is a very tough gig. ^is spot on, use your personal network. And create a portfolio.

Craiglist and any posting site will have you in competition with India and Pakistan. You want to find local clients and be able to show them immediately that you offer an advantage beyond just being in the same town.

1/19/2009 4:57:09 PM

Quote :

" All parts they get, plus some charges if I have to run to TD or somewhere to get."

cost + XX%

1/19/2009 6:58:17 PM

^ Ive done retail before, so I know how to skim. And if they want receipts it dont work. Ill figure out a "travel" surcharge or something another if I have to go get parts. that or bill hrly for time spent getting parts.

1/19/2009 8:24:24 PM

Never surcharge for parts.

You want to deal with parts + labor. They WILL want receipts to reimburse you on parts invoices. You are much better off billing out for your labor than trying to skim on parts. You don't bill for time spent getting parts either, unless it's an emergency situation. That's just not good business practice.

1/20/2009 2:20:23 AM

corporate insurance. you're going to be taking on liability for their data and data security, depending on the contract. $358 a year from the hartford is what I pay in insurance when I have no employees. I have a retainer minimum and hourly on top of that generally. If it's one time I charge about 3x as much. LLC is only like $150 to register. You can write off a LOT. If you hook them up on good part deals, they will love you. Just don't have em do some slickdeal bullshit if the product isn't going to do exactly what they need.

1/20/2009 9:56:18 AM

there's a lot of expenses that can creep up on you though if you do the incorporated route though. business licenses, insurances, CPA, lawyer

1/20/2009 10:17:30 AM

^ & ^^

way over here. this is just some casual work. nothing i hope to support my self off of. least not permantly.

1/20/2009 2:05:15 PM

just make sure you outline your responsbility and liabilities in whatever contractual agreement you come up with.

smoothcrim: is that a workers comp ghost policy?

1/20/2009 2:27:20 PM

well I manage to get away with sole proprietor's insurance as an LLC as long as I don't hire anyone directly. If I hire someone directly there's like 3 other riders that get tacked on. Since I haven't found anyone I feel is worthy of representing my company all the time, I generally just do the sub-contractor route. It saves me a lot of time, money, and headache.

1/20/2009 2:36:18 PM