SAS CONSULTANTS
SAS CONSULTANTS
Sheep in Wolf’s Clothing
By Gary McQuown
Data and Analytic Solutions, Inc.
Disclaimer
The following information is general in
nature and intended for informational
purposes only. It is not to be construed
in any way as financial or legal advice.
You should consult with a trained
professional familiar with the laws and
regulations of your area for specific
advice.
Questions
What is a SAS “Consultant”?
Why consider (not) becoming one?
What are the Pros and Cons?
The Fine Print?
SAS Consultants
An individual that provides a “SAS”
service to another for profit.
“Oldest Profession”
Employee vs.
Independent Contractor
20 Rules To Determine Employee Status
IRS Revenue Ruling 87-41
“Microsoft Ruling”
In General
Employee:
Regulated and Controlled by Employer
Independent Contractor (Consultant):
Independent and Self Controlled
WHY ???
Money
Power / Control
Warm Fuzzes
Pros
Higher Income
Write Off Business
Expenses
Greater Flexibility
Interesting Activities
Lack of Hierarchy
Independence
Unlimited Potential
Cons
Lower Income or Loss
Business Expenses
Uncertain Schedule
Non Billable Tasks
Lack of Support
Greater Responsibility
(binding non compete)
Unlimited Failure
Income
Revenue
Rate * Billable Hours
Expenses
Taxes
Supplies (software)
Professional
Transportation
Other
Rates: SCONSIG.COM SAS SALARY SURVEY
Professional Expenses
Insurance
(Professional Liability, General Liability,
Errors and Omissions, etc.)
Legal
(Contracts, Incorporation, Problems)
Accounting
(Taxes, Book keeping, Billing)
Marketing, Training & Development
(SUGI, SESUG, NESUG & Classes)
Non Billable vs.
Hours
Marketing
Accounting
Book Keeping
Networking
Training
Administration
Lost
Hours
Holidays
Vacations
Sick Leave
Travel
Between Jobs
Lack of Work
40 Billable Hours = 40 + ??? Actual Hours Worked
Wolf or Sheep
“Expect half of the employees to hate
you before you arrive”
“Hope the other half don’t hate you
before you leave”
Roll Offs and Restrictions
First in line for : Blame and Layoffs
“Family First”
“Truth and Honesty”
The Fine Print?
Legal Protection / Contracts
Job Availability, non competes
Corp to Corp, 1099, W2
Head Hunters (second oldest profession)
Benefits (write offs, 401K, Keogh, IRA)
Growth (personal and professional)
Incorporation
Protection, Benefits and Cost
Doing Business As
Limited Partnership
Chapter S
Chapter C
= Small
= Moderate
= Significant
= Greatest
Types of Consultants
Bench Warmers
Probably Unwise to Incorporate
Fire Fighter
Possibly Unwise to Incorporate
Builders
Unwise NOT to Incorporate
When in Doubt
DON’T
Frequently Asked Questions
How do I get jobs?
Will I be able to get jobs?
Do I have to use Head Hunters?
What contract will I use? (ICCA)
Where will I work?
What will I do?
Will I make more or less?
What happens if I fail?
Thank You
www.DASconsultants.com
www.SCONSIG.com
www.ICCA.com
Consultant’s Handbook