[ydt]

I've been doing contract work since 2004

* LLC with S-Corp designation. This is very tax-advantaged vs. Sole Proprietor.

* Currently, I'm mostly on-site for one client.

* 1-person shop.

* I have an accountant. You want a good, small business accountant.

* I buy health insurance for my family through the ACA exchange. It's very expensive so make sure you factor it into your rate.

I've had 2 FT gigs that lasted 6 months each since 2004 and regretted it both times. If you can handle having to network and interview frequently you can make more money with more flexibility as a contract developer.

[seangrogg]

Thank you very much for the insight! A few questions, if you would:

* What are some recommendations you have for establishing a rate? Do you use hourly, weekly, or project?

* What do you look for in a small business accountant (it sounds like you may have had a less-good one in the past)?

* What avenues do you typically find yourself using for contract work? i.e. LinkedIn, job boards, word of mouth, etc?

[ydt]

* I use hourly mostly because it is common and is met with the least resistance. Either way, raise your rate at least a little after each gig. Don't get complacent, just keep ratcheting it up.

* I've actually been blessed with a great accountant. He's saved me thousands over the years and sent letters to the IRS on my behalf clearing up a couple issues along the way. I would look for someone who specializes in small, professional service firms that is used and referred by people in your area. If they tell you they don't think you should organize as an LLC, look elsewhere.

* Starting out I used recruiting firms. They have the advantage of an established network and getting you paid every 2-weeks. The disadvantage of course is they take a cut. Their first ask will always be a low-ball hoping they can get a huge margin. Always try to get them to make the first offer and always ask for more. You'd be surprised how much room they have to negotiate up most of the time. As I've made connections over the years I've relied more on my network, but I'll still use an agency to fill the gaps. Also, boutique consulting agencies can be great for sub-contract work. They often need to staff up for a project they just landed, but don't want to take on full-timers and they usually command excellent rates.

[acconrad]

> boutique consulting agencies can be great for sub-contract work

I just wanted to second this point. In this way, checks both boxes off: one for getting the advantage of an established network like a recruiting firm; two for getting you the higher rates and not needing a middleman

[seangrogg]

Awesome! Thank you very much for your time and answers!