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To Inc. or Not to Inc.?

Posted by Cliff on from the that-is-the-question dept.

rikkards asks: "I have just started as a contractor for a government office and am doing this through a recruiter. Said recruiter is saying I may want to incorporate myself. I am wondering if it is really a good thing. I am not sure whether or not I want to stay as a contractor for the rest of my career. The money is decent coin (for today but maybe not 2 years ago). Does anyone have any pros/cons on doing this? If I do it soon the recruiter will do it for me."

1 of 29 comments (clear)

  1. Pros and Cons by mfos.org · · Score: 3, Funny

    I'm assuming the recruiter is suggesting that you create a corporation that hires yourself that offers consulting services.

    Pros:
    Limited liability - If you mess up, they can only sue your corporation. Think of it as a sheild.

    Another pro, since the government is hiring a company (yours) and not a person, if you screw up, your boss can complain only to the company that hired you.


    From the Bastard Operator From Hell

    "So we're screwed whatever we do?" The Boss sighs.

    "Yep - that's why it's called a disaster. We only have personal recovery plans here."

    "Which are?"

    "Send each other's contracting companies bust by suing each other for negligence before this company can get to us. Then hide in the Third World (Liverpool) till the noise dies down, and get a new contract with another company."

    The biggest con is expense, a document of incorporation can cost upwards of $10,000

    The other con would be taxes, as the corporation's taxes must be filed seperatly from yours.

    Hope that helps