I am a Electrical Engineer with 10 years experience. I am recently unemployed and am considering starting my own business providing EE services. I obviously need an LLC, but I have more questions. I really love EE work and am very good at it, and I do provide a couple specialty services that seem to be going the way of the dodo bird.
- My occupation can often times target government grants - which I think would be a big part of my startup mentality. Would it make sense to have my wife own the business to qualify as a Small Disadvantaged Business? SDB? I know the government is required to do so much business through SDB. My wife has a lot of business knowledge and has a masters degree in non-profit management, and business is not really stuff I care about, other than keeping my bills paid.
- How do I structure my business to be the most attractive. So far people have been interested in getting me on contract and working in their office as a regular employee. This is misclassification in the eyes of the government, as far as I can tell. I'm wondering if I can 'rent back' the space from the potential employer. I think the potential contractors are skidish about me providing services and bailing since I don't know them personally. So they are trying to get me at a lower rate and get me in their offices to keep watch over me.
- I believe it's important to have multiple revenue streams in the business. And I'm targeting 50 hour work weeks. I'm hoping to get work where I average 30 hrs with one company and 20 hrs with another, for a good balance. Does this sound reasonable?
- Should I be an employee of my business? If my wife is the boss, am I still an independent contractor?
- I'd prefer to work from home and provide services with a bit higher hourly rate because I have to provide the equipment - which hopefully saves them some money (not needing a EE on full-time, or lab/office space, etc.). But still be able to meet locally for project meetings, and those sort of things. Somebody must want this type of service.
- Who would I contact for insurance on this type of thing?
- I would also like to bill a bit higher than the going rate so they really use me for my skillset and force them into using a technician or someone to do the dirty work - therefore the hours I work are more productive for them, so they get more value for their money than even a staff EE.
Am I losing it? Does this sound like a good idea? Should I buy equipment before or after someone inks a deal with me?