[psyklic]

> Once I started consulting, several of my initial clients offered to hire me as an employee; my backup plan was to pursue one of those offers.

I've been consulting for ten years in software/AI/data science. One of the largest difficulties is that many potential clients actually want an employee, not a consultant (perhaps hoping I'll join full-time if it works out, similar to above). In fact, most people who reach out are only looking for employees.

Nowadays it's also become more difficult to independently consult in California, since there are tighter tests for independent contractor vs. employee. Even forming a single-member LLC may not be enough to get around the distinction for some types of work. Due to this, one of my 5+-year clients was forced to reconsider our contract, and ended up only offering employment.

Supplementing income with part-time employment could be perilous for a consulting business (note: ianal, consult your own lawyer). For example, there is potentially an explicit "duty of loyalty" not to work with "competitors." And, the IP ownership clause could include any work "related to" your employer's business -- even when created on your own time.

[hackernewds]

Companies now actively seek or mention criteria that they were not hiring CA based freelancers.

California's IC laws are a testament to the idea of excessive government overreach creating a mess out of a functional system. At best with good intentions they implemented poorly written laws. Or the cynical view, they implemented a set of laws without genuine concern, simply because these companies were politically beneficial to oppose (the gig economy companies in this case).

[hankchinaski]

Same goes for what has been happening in the U.K. with regards to the off-payroll legislation or “IR35”. It has now become near to impossible to work as an independent consultant via a personal service company. Vast majority of companies now just want bum-on-seat contractor on fixed term contract and company payroll.