Consulting/independent contracting

[WRESTLINGFAN]

I am full time in financial services, I know a lot of companies in my field use consultants for their long term projects? Has anyone done consulting? Advantages/disadvantages? How is the tax part of it? Do you have to do your own deductions ie Medicare FICA etc?

[JPMNICK]

I am full time in financial services, I know a lot of companies in my field use consultants for their long term projects? Has anyone done consulting? Advantages/disadvantages? How is the tax part of it? Do you have to do your own deductions ie Medicare FICA etc?

I do it now for a major bank. it has its up and downs.

the nice part is you make way more money. i bill so much higher then i would get salary.

the other nice thing is since i own my company, I have a lot more write-offs. You can write off health insurance, portion of cell phone, entertainment and meals, electronic equipment.

the bad part is you have to be VERY organized. you need to save all of your receipts, file them, basically be your own bookkeeper and have a ledger, make sure you make you tax payments. it is also a pain to figure out how to pay yourself (getting the money from company account to your personal account). you also have to be on top of invoicing and making sure checks come on time.

[jonyrotn]

be your own bookkeeper

If you go by that show Mad Men, that'd be jerkin' off, wouldn't it?