Free Agent Services
So You Want to Be Independent?


"If you're going to do something important, the best time to start is right now. Not later, tomorrow, next week, next month, or next year.  Right now.  the best strategy is to "dive in."


  • Richard Carlson, Ph.D. Don't Worry, Make Money

Ok, so now you know a bit about the type of company you will become.  Since we are not a legal advisory or related professional accounting firm, we cannot give formal advice on what you should eventually become.  However, we do have opinions.


Much of your decision must be based on your long term intentions.  If you are taking the consulting or Free Agent approach you must decide on the following:


    • Why are you doing this?

    • How much do you have to invest - both time and money?

    • What is your time frame - how long do you plan to do this?


Think about this for more than a few minutes.  Discuss it with family and friends.  Remember this is not just a new job, it is a total lifestyle adjustment that will have significant impact on your family, friends and business associates!


If you are doing this because you just need work and plan at a future date to re-enter the 'W2' employee workforce, then the Sole Proprietorship is the least cost and easiest.  It does NOT provide any protections as other forms of business organization do, but you probably won't need that protection for a short term sojourn into Free Agency.


If you plan to make a living as a Free Agent and want to kiss the 'W2' goodbye for a significant time, then a Sub-S or LLC is the route to go.  A C-Corporation is way too complicated to discuss here.  Unless you plan to become a General Motors (probably a bad example these days!), or major corporation, this is not for you.  If you are hugely successful, there are ways to 'convert' from a Sub-S corporation to a C-Corp.


I have known many friends who have opted for the LLC form.  Others the Sub-S route.  Still others, continue as Sole Proprietors. 


One key differentiating factor you must keep in mind is that as a Sole Proprietor, you will be treated as a contract employee.  Tax-wise, you will receive a 1099 document which is reported to the IRS for all your earnings.  State laws will vary so make sure you CHECK IT OUT!


As a Sub-S or LLC, you are a 'real company', just like any other company you do business with.  Grocery stores, dry cleaners, automotive dealerships; they are all some type of company and are responsible for accounting for and paying all taxes.  This includes withholding from employees, Social Security Taxes, Medicare, Medicaid and local/state withholding (where it applies).  Your revenue from your clients is between two companies or corporation-to-corporation and is usually defined in a written contractual agreement.  Ad-hoc services may not require a formal written agreement, but verbal and social contract terms do still apply.  This means that YOU as the Chief Executive, are solely responsible for accounting for all revenue and expenses, tax reporting and filings.  YOU are also the main (maybe only) employee of your company. 


Still want to do this????


If so, keep on going.....  but we have some homework for you!  Homework=>>