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New Startup Company - Contract work vs. Employee

 
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ReelTeam

posts: 2

Aug 26, 2008 12:37 PM ET    Quote  Report Abuse
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I started a marketing/media business after 20 years in radio sales.  My client pays me a % of the ad dollars placed, but would like me to do various jobs over and above the media buying (ie. PR, branding) and would like to pay me in addition to the %.  He`s offered to "employ" me for these tasks, or pay me my hourly rate.  Any benefit to being an "employee" (w/no benefits, fyi)?  Which position provides me the greater oppty. to earn more?  Thank you!

Denise Rouleau

Reel Marketing & Media

bodytherapy

posts: 6

Aug 26, 2008 2:11 PM ET    Quote  Report Abuse
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It seems the greatest benefit to you would be running this work through your company especially if this is going to be the first of many.  This would give you the ability to work under the cover/umbrella of your business entity.

But then again this wholly depends on your goals for your business. If this is inline with the goals of your business then I think it`s a great opportunity for your business to shine with more in it`s portfolio as opposed to just on your resume (as an employee).

I`m not entirely sure but I`ll throw this out there anyway. Perhaps someone can comment on this more. As an employee you may not be able to claim recognition for the work you do for them. However, a contract between the two companies and it seems there could be more than just one, it seems you would definitely be able to claim recognition for the work you do for them at the business entity level as opposed to an individual resume level. Provides you more leverage for your business, more marketing potential, more credibility as a company...

Financial benefits I suppose depends on what the difference in pay will be since you won`t receive any benefits, relying on self-provided benefits in either scenario. 

Just my two cents.  Hope it provides something thought provoking :)  Good luck!
KJC

posts: 69

Aug 26, 2008 5:07 PM ET    Quote  Report Abuse
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I would recommend working more on a contract basis, for a couple of reasons:
 
1) In having a contract, the tasks requested of you will be specific to the contract.  As an employee, there could be the potential where you get pulled into a number of tasks that you might feel are outside your realm of responsibilities.  Have a contract relationship with very specific tasks you are to perform will help you preserve your relationship with your clients.
2)  There are certain tax implications from this decision.  If you are a contract worker, you should be able to identify a number of expenses to reduce your taxable income amount.  Also, since you are not on their payroll, they should pay you more because they don`t have to pay employer income taxes related to your wages.
 
Hope this helps!
ReelTeam

posts: 2

Aug 26, 2008 5:54 PM ET    Quote  Report Abuse
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Thank you very much for your responses.  Very, very helpful.  I appreciate and value your input.
 
 
nevadascul

posts: 651

Aug 28, 2008 6:48 PM ET    Quote  Report Abuse
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Just my thoughts,
As an employee, your employer might want to limit who you can work for.  You might wind up working only for that employer.  Thus, you would loose a lot of other clients that could pay more for your services.


-------------------------

The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.
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