Author Topic: Consulting gig opportunity .. questions.  (Read 454 times)

albireo13

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Consulting gig opportunity .. questions.
« on: April 06, 2021, 11:03:17 AM »
Hi,
  Well, I have a technical consulting opportunity which has come up recently.  It will involve part time work, charged at an hourly rate.
This is new to me so I am looking at suggestions for handling bookkeeping, invoices, income, taxes, etc.

It will be part time and not sure yet for how long ... a few months or it could be longer term.

I am not setup as an LLC.  I am not sure this is necessary yet.  Thoughts?

Anyway, any advice from experienced contractors/consultants would be great.

Thank you.
« Last Edit: April 06, 2021, 11:12:16 AM by albireo13 »

use2betrix

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Re: Consulting gig opportunity .. questions.
« Reply #1 on: April 06, 2021, 04:04:14 PM »
When I worked 1099 I did everything through TurboTax. Guidelines for deductions to track throughout the year can be found online.

How deep into the tax thing you want to get largely depends on your own circumstances. Id do some research and see what may apply and ask some specific questions as they arise.

Telecaster

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Re: Consulting gig opportunity .. questions.
« Reply #2 on: April 06, 2021, 04:10:17 PM »
None of that is very hard, I just use Excel.  However, I recommend dropping some dough and have a CPA explain to you how it all works. 

albireo13

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Re: Consulting gig opportunity .. questions.
« Reply #3 on: April 07, 2021, 08:08:02 AM »
I am likely doing it a a sole proprietorship.  Don't need an LLC.
This will likely be a one-and-done deal but, may be extended.

chasesfish

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Re: Consulting gig opportunity .. questions.
« Reply #4 on: April 07, 2021, 08:09:36 AM »
What is the liability/litigious opportunity?  How well do you know the people hiring you?

I do some consulting, mainly from referrals from friends.  I'm going to professionalize it into an LLC this year and buy my own liability insurance because of the tail risk of a lawsuit and wanting to protect my personal assets.

If you don't see that as a risk, then just move forward and they'll send you a 1099 at the end of the year

BlueHouse

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Re: Consulting gig opportunity .. questions.
« Reply #5 on: April 14, 2021, 02:30:43 PM »
I had a similar opportunity that kind of landed in my lap.  10 years later, I retired.  Yay!

Like you, I started with the idea that I'd work this one job as long as it lasted, and then see what happened.  i just kept getting more business.  I used the idea that I'd set things up so I could grow/expand as necessary, but if I had to do it over again, I would have just done an LLC, filing as an S-corp. 

Because my work was consulting, with just me, I couldn't work more than a few jobs at once, so I just used Quicken (already was using it for my personal accounts, so I just created a new file for the business).  I never bothered setting up Quickbooks, although everyone tried to sell me on the necessity of it. 

For timekeeping, I used Excel, and for invoicing I used Excel.  everything was easy and straightforward (and cheap).

I think you'll need a bank account and a separate credit card that you use ONLY for business. 

I set up as an s-corp, so I had to do payroll.  At first, I did it all manually through my bank, but eventually used a payroll company (Paychex) to cut me a check each month and do the corporate taxes.  I also used them to administer my 401K. 

Good luck!