WWTBAM Bored

The latest gig from my consulting group is limited to a maximum of 30 hours per week. Just as it was about to start, a company where I had applied weeks before called me in for an interview. I told the hiring manager that I had committed to the consulting job and wouldn't be available until July. They are under a deadline to get some things done before that, but the manager liked me so much that he offered me a consulting job with later discussions about going full time.

All the paperwork is now completed. The consulting agreement is signed by me and the company bosses. I'm set up as a business (does that give me twice the rights under the Supreme Court decision that businesses are also individuals?). I have a company name, a business checking account and, most importantly to the Feds, an EIN. Also E&O insurance. That's Error and Omission liability insurance in case I screw up without meaning to. It doesn't cover me if I mean to.

I start tomorrow. By coincidence, the other gig doesn't need me for a few days, partly because their production schedule has slipped, and partly because I'm good at what I'm doing and do it faster than they figured. So I'll be able to get up to speed that much faster. The deadline may be sooner than I thought (the expected event may come as early as three weeks from now). The manager said to get done as much done as I could b/c it's better than not having anything done. As they say, on paper this looks good.

I am really looking forward to this. Also a bit nervous. It's my first jaunt into being an independent consultant. We'll see where it leads.

Congrats and good luck!

That sounds great. I'm glad things are starting to look up.

all the best is this venture

Good for you!

I'm back on the job market but expect to have something by the end of next week at the latest.

Great news. Hope it works out well for you.

kay

Good luck!

Best of luck - at least you are working on several real options.

Don't forget that as a 'business' you'll be paying a lot more taxes.

I hope it all works out for you, G.

Congratulations. Glad things are lookng up for you.

Excellent! Good luck with your new endeavor. As mentioned earlier, don't forget to stash away some $$$ for when the revenooooers come knocking.
Love,

jaybee wrote:Don't forget that as a 'business' you'll be paying a lot more taxes.

That's true. But you can also take some deductions that ordinary employees can't. Unfortunately, commuting isn't one of them. Keep records of your expenses and activities, especially in this period when you're working two jobs.

Wow! Congrats. And may it turn into real-employee status in the future when the other job is done!

Congrats and good luck.

Can you remind me what it is you do?

BackInTex wrote:Congrats and good luck.

Can you remind me what it is you do?

Quality Assurance for FDA-regulated companies. Basically, I'm the corporate bureaucrat who makes sure that work instructions are followed, everything done is recorded somewhere and that we investigate all deviations from the SOPs and instructions. I rationalize this by saying I'm the corporate bureaucrat who's keeping the REAL bureaucrats from Washington DC off our backs. That's not entirely altruistic. If something truly goes south and we knowingly let it go, I'm in the cell right next to the boss.

To answer some of the other statements:
Yes, I'm aware of the tax situation and that commuting is not deductible. I will take full advantage, in my conservative fashion, of any and all possible deductions. That should include the business setup fees, such as the cost of the EIN (didn't realize they charged for this until the screen asking for credit card info popped up), the E&O insurance (normally I'm covered through the consulting group or agency), and other stuff. Taxes will be paid quarterly. That may be a moot point for this quarter, as I may not get my first payment until July. Has to do with timing and scheduling.

Most of my job has to do with records, so keeping them for myself isn't any big deal.

Okay, BTW. Ciao!

gsabc wrote:Taxes will be paid quarterly.

Be aware that estimated tax payments are due quarterly as defined by the government. One might assume that would mean April 15th, July 15th, October 15th and January 15th. One would be wrong.

Payment Due Dates
You can pay all of your estimated tax by April 15, 2014, or in four equal amounts by the dates shown below.
1st payment . . . . . . . . . . . . . . . . . April 15, 2014
2nd payment . . . . . . . . . . . . . . . . . June 16, 2014
3rd payment . . . . . . . . . . . . . . . . . Sept. 15, 2014
4th payment . . . . . . . . . . . . . . . . . Jan. 15, 2015*
* You do not have to make the payment due January 15, 2015, if you file your 2014 tax return by February 2, 2015, and pay the entire balance due with your return.

From: http://www.irs.gov/pub/irs-pdf/f1040es.pdf

Thanks Estonut. I actually knew this primarily from my WoF appearance. My show aired late enough in the year that I didn't get the cash or prizes until the following year, so I did estimated taxes throughout. I've done it subsequently for other reasons, but that was the first. You always remember your first.