Legal Alert: Independent Consultants May Need to Comply with New Corporate Transparency Act

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Legal Alert: Independent Consultants May Need to Comply with New Corporate Transparency Act

Although the Corporate Transparency Act (CTA) sounds like it only applies to large corporations, it affects you as an independent consultant if your business is structured as anything other than a sole proprietorship. If your business is an LLC, C-corporation, or filing taxes as an S-corp, you are legally obligated to fulfil the reporting requirement that kicked in at the start of this year. This article tells you what you need to know and how to comply so you can avoid unnecessary fees and penalties.

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Use ChatGPT to Boost Your Productivity as a Consultant

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Use ChatGPT to Boost Your Productivity as a Consultant

Of course you’ve heard of ChatGPT but are you using it to work smarter and more efficiently yet? If not, you should be! Recently the Professional Independent Consultants of America (PICA) hosted a members-only roundtable discussion to help people jumpstart their use of this powerful tool. Special thanks to Alexis Hultine of Digital by Design, and Dave Seaton of SeatonCX for leading the session and sharing their insights. This article was written by ChatGPT using the transcript of the roundtable.

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Figuring Out Your Billing Rate as an Independent Consultant

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Figuring Out Your Billing Rate as an Independent Consultant

Too many solopreneurs undercharge for their expertise. They don’t know to add a hefty margin to cover things like self-employment tax, business expenses, health insurance, and nonbillable time spent on business administration. Or they haven’t raised their rates consistently over time, or they haven’t switched to a fixed fee. This article explains how to determine your “base rate”, and the external factors that will impact your pricing. …

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Business Development in the 21st Century

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Business Development in the 21st Century

As self-employed professionals, we’re experts at helping our clients solve problems but we often struggle when it comes to building a healthy pipeline of leads. For most of us, prospecting for new clients is the very last thing we want to do.  But what if there was a way to make it less of a chore and maybe even enjoyable? …

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Start Each Engagement with the WOW Factor

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Start Each Engagement with the WOW Factor

One of my “whys” for becoming a solopreneur nearly 20 years ago was to have more quality time with my daughter. Self-employment would not only let me set the boundaries I needed, but it would also allow me to manage my time as well as my clients’ expectations. To do this…

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Self-Employed? Think APV: Always Provide Value

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Self-Employed? Think APV: Always Provide Value

As a solopreneur responsible for finding your own work, you may be tempted to adopt the ABC sales mantra, “Always Be Closing,” as described so powerfully by Alec Baldwin in the movie Glengarry Glen Ross. But when you’re self-employed, ABC might be the kiss of death to your business because nobody likes being sold.  As coaches, independent consultants, and financial planners, we’re problem-solvers, not salespeople. We want to be remembered and trusted, so put the client first.

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Every Solopreneur Should Know Their Why

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Every Solopreneur Should Know Their Why

Solopreneurship is not the right career choice for everyone. You have to do things you’ve never done before and push your boundaries, all while trying to earn a living. It takes courage, persistence and grit because fear, uncertainty, and doubt—FUD—is always lurking, trying to coax you back to the safety of a “real job.”…

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Nine Things to Think About Before Taking the Leap to Independent Consulting

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Nine Things to Think About Before Taking the Leap to Independent Consulting

Being a self-employed solopreneur isn’t for everyone. Sure, it sounds fabulous—the ability to be selective about the work you do, have a flexible schedule, escape office politics, make good money—but there are drawbacks. I made the leap to independent consulting in 2004 and never looked back. Although I made more money while working fewer hours, I also had to learn how to run my own business. Here are nine things to think about before taking the leap to become a solopreneur.

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To Boost Your Business, Track Your Time (Nearly All of It!)

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To Boost Your Business, Track Your Time (Nearly All of It!)

Management guru Peter Drucker once said “you can't manage what you can't measure.” I prefer to say, “Anything that’s measured can be improved.” By tracking (measuring) how you spend your time, you can increase your effectiveness, your income, and even your quality of life.

Time is one resource that’s truly irreplaceable...once it’s gone, it’s gone for good. Read more for tips on why you should track your time, what time to track, and how to make it happen.

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Consultant, Contractor, Freelancer - Labels Matter!

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Consultant, Contractor, Freelancer - Labels Matter!

If you were a hotel chain, would you be a Motel 6, Courtyard by Marriott, or a Ritz-Carlton?

If you refer to yourself as a freelancer or consultant, what does that imply?

The terms you use to describe yourself will impact how potential clients perceive you, how they pay you, and even how much they're willing to pay.

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The PRO Act Will Limit Your Ability to be a Self-Employed Consultant!

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The PRO Act Will Limit Your Ability to be a Self-Employed Consultant!

If you’re self-employed, or thinking about it, or you know someone who is self-employed, THIS IS IMPORTANT! We need to take action now to protect our right to be hired and paid on a business-to-business basis as independent contractors.

On March 8, 2021 the U.S. House of Representatives passed the PRO Act that includes the “ABC Test” that’s part of the controversial California law AB-5. The ABC Test is a huge problem for us as independent consultants because part B states that an independent contractor must perform work that is outside the usual course of business of the hiring entity. This means that as an independent consultant, you can't subcontract to another consulting firm, nor can you hire subcontractors to help you with your own consulting work. Instead, you would have to be hired (or hire others) as a temporary employee on a W-2 tax basis, not on a 1099 tax basis. This is a big deal for us as self-employed professionals because how you are paid affects how much tax you owe…

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