Chugalug Digest, Vol 10, Issue 61

From: Mike Robinson 
On May 23, 2013, at 6:00 AM, wrote:
> Pretty much every 1099 work I've done has been very loose: I do some =
> I send an invoice. I get a check. Rinse. Repeat.
> The work is usually discussed as we go and I say "that'll take me X =
> I usually try not to bill for more than X without discussing the =
> I've had occasional contracts that have included NDAs. I've never had =
> contract with a non-compete. And, surprisingly, I've never had a =
> that involved penalties for not delivering. But, again, most of the
> contract work I've done has been basically "piece work".
> If you are presented with an overly complex contract then make sure =
> rate includes the cost of legal advice. For instance, if you want me =
to sit
> in a chair and watch TV but you give me a 100 page contract, I'm going =
> bill $250/hour with a 40 hour minimum because the first $5000-$10000 =
> go to a lawyer to sift through the contract. Otherwise, run away.
> -Eric

A few specific suggestions:

(1) Buy one of Herman Holtz's (Hermann Holz ...) books on "consulting =
contracts" and read it cover-to-cover.

(2) Form an LLC, and get to know a CPA and an Attorney, neither one of =
which should be people that you have done work for.  Do what they tell =
you to do.

(3) Probably the biggest mistake that you can make in this business is =
to over-commit and under-specify.  You -will- need to engage the =
services of others, and still make money doing so. =20

(4) Mind your P's and Q's.  You -must- do the paperwork and keep it up, =
and unless you have the two parties in #2 to stay on top of it, you =
won't. =20

(4) The Internal Revenue Code is thousands of pages for a good reason.  =
(Well, maybe not a "good" reason, but thousands of pages anyway.)  Much =
of it is intended to promote small-business.  But you won't hear about =
any of that at H&R Block.  Having "blah blah, CPA" on the "preparer" =
line is a big deal.

(5) If you write a response in the wrong order, you'll get the =
bullet-numbers wrong.  ;-)