| im considering some contract work... i have a special skillset, and the company that is offering the contract will pay ~68/hr. The median in my area is roughly $45/hr. It's an interesting position in that I'd be speaking directly with customers, while also doing integration of systems, as opposed to just being an in-house coder. Is there a reason that I should be wary of doing contract work? Is there a reason why this contract is willing to pay so much more than a regular fulltime position? Ultimately, I'd like to start a company, and this could be a good way to build capital, and control the amount of hours that I'm working as well, so that my work time doesn't bleed into the time I want to have for startup projects/ideas. What's your experience with contract work? |
One advantage of contracting is that you can get a nice long break when you're done (i.e. being between contracts). Depending on your ability to budget financials for this time that you're out of work, ability to find new contracts, and motivation level when unsupervised, you can use this time to focus on a company. In a likely scenario, you can make the same net amount in 9 months as you would in a year for equivalent work after taxes, all depending on your negotiation skills and gap between salaried and contract pay, leaving 3 months to focus on your company.
Get a good accountant, it's well worth the cost in tax savings. As others said, watch for the big tax bill at the end of the year, or you can work with your accountant to pay taxes in monthly periods. A staffing agency is sometimes easier to deal with for taxes since they handle service taxes, if applicable.
Get good at doing interviews, since you'll be looking for new work once or twice a year. Recruiters are often a necessary evil so be good to them. Contractors also naturally have better networks since they move around so often and make new friends.