come and go as contracts come and go. The purpose is to coordinate freelancers
in various development tasks for web development or network security. This
arrangement provides the client with a single point of contact and a single
point of billing. A markup or margin is always added to the contractor's hourly
rate sufficient to cover administration, billing and taxes.IRS rules regarding
1099 and W-2 is widely abused, and subject to interpretation by different IRS
examiners.
As a general practice, I pay the developer via 1099 when the contracted amount
is less than $500. and via W-2 if over that. This relieves the freelancer from
having to worry about collection problems from the unknown client, contract
legalities, scope creep, or marketing. The freelancer gets paid whether or not
I do.
I always have "payment due by milestone" terms built into my contracts, and from
the due date of a milestone payment until payment is actually received, all
development stops. Fortunately (for me) I have had only one client who would
not pay after delivery of a milestone and that contract was eventually
abandoned. All code delivered will self-destruct after 30 days unless a key is
delivered (After payment is received.)
======================================
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If you are not satisfied with my service, my job isn't done!
----- Original Message -----
From: "Candace Cottrell" <[EMAIL PROTECTED]>
To: "CF-Community" <[EMAIL PROTECTED]>
Sent: Friday, October 17, 2003 8:35 AM
Subject: Freelancing vs. Home based business
| When does freelance work become a home-based business that you have to
| incorporate, etc? How are taxes different for freelance/odd jobs vs. a
| full-fledged business?
|
| Candace K. Cottrell, Web Developer
| The Children's Medical Center
| One Children's Plaza
| Dayton, OH 45404
| 937-641-4293
| http://www.childrensdayton.org
|
|
| [EMAIL PROTECTED]
|
|
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