I have an opportunity to perform consulting work for an out-of-state corporation. My current full time employer has given me the green light to proceed with this project (and I have it in writing) provided that I do not utilize any company owned resources, to which I have agreed. In order to provide engineering services I have to be licensed in that state, and I have since obtained my PE license there. Since I am also licensed in my state of residence (NY), I should be in good shape legally. I will NOT be involved in any type of civil engineering, or building construction whatsoever. This is a consulting position for process-related engineering projects in a manufacturing operation.
I am still putting together the consulting agreement (nothing has been signed yet except an NDA). I have the ability to set up my own separate company for this purpose if I choose to. My accountant suggested that I simply use my current tax ID number and perform the consulting work as a DBA for tax purposes. She felt that it wasn't even worth the trouble of getting a separate DBA number, much less establishing a separate company. I'd like some recommendations from the members of this forum who have traveled this route before me, and would like to learn from your experiences, both good and bad.
The topic of insurance has come up, but for this particular type of work, I have a very difficult time justifying getting it. After the project ends (in 1 or 2 years) I would simply cancel the insurance. And from what I understand, once the policy is cancelled, you aren't covered for anything that might occur. So you either walk into it deciding to pay for the policy for the rest of your life, or you just don't get it in the first place. Your thoughts?
Maui
I am still putting together the consulting agreement (nothing has been signed yet except an NDA). I have the ability to set up my own separate company for this purpose if I choose to. My accountant suggested that I simply use my current tax ID number and perform the consulting work as a DBA for tax purposes. She felt that it wasn't even worth the trouble of getting a separate DBA number, much less establishing a separate company. I'd like some recommendations from the members of this forum who have traveled this route before me, and would like to learn from your experiences, both good and bad.
The topic of insurance has come up, but for this particular type of work, I have a very difficult time justifying getting it. After the project ends (in 1 or 2 years) I would simply cancel the insurance. And from what I understand, once the policy is cancelled, you aren't covered for anything that might occur. So you either walk into it deciding to pay for the policy for the rest of your life, or you just don't get it in the first place. Your thoughts?
Maui
