Monday, March 09, 2009

Why Won’t They Hire Me?

You are an excellent consultant. You are professional. You know your topic. You have great people skills. You deliver on your commitments on time and on budget. Your client has the money and they are looking for someone to help with their project – someone just like you – no, someone who is you. So why won’t they hire you?

When you try to find out, the Project Manager mumbles something about rules. All they are allowed to hire are other companies. Frustrated and sad, you walk back to your car. How can they possibly have a rule like that? Not everyone is IBM.

You became a sole proprietor so you could work your own hours on the projects you like for a fair price and put the money into your pocket, not the corporation’s. Now you’re finding it hard getting the projects you really want. Do you need to work for a management agency to get the work you love? Absolutely not!

Several years ago a very large corporation ended up in trouble for hiring certain people as independent contractors when in almost every respect they were really employees. It cost the corporation a small fortune to fix. When something like this happens, word gets around fast; and even years later no other business wants to find itself in the same position.

The Internal Revenue Service has strict rules on who qualifies as an independent contractor; and if you, the business, get it wrong, you could be liable for paying that hire’s payroll taxes and benefits on top of the contract price.

Most corporations avoid this issue altogether by hiring only companies to supply independent contractors. Are all these companies the size of IBM? Of course not. Here’s the solution to your dilemma – you can be your own company. Yes, John Smith can be an employee of Advanced Project Management, Inc. or Smith Enterprises, LLC. Your client would contract with your corporation or limited liability company for your services. You would be unable to take them court, claiming you are really an employee of their corporation, because the corporation did not hire you – it hired your company. Problem solved. While you will still be working to put money in the company’s pocket rather than yours, you will at least own the company and can get the money out.

Want to find out more? Email us at info@yourentitysolution.com or call 702 506 0190. We specialize in helping new entrepreneurs get started.

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