Greetings,
I have periodically worked as an independent contractor (statistical consultant), most recently for the State of Alaska. I just used a sole proprietorship because it is easier and cheaper than an LLC. If you are insured and carefully follow standard procedure in your analysis, you are probably OK (and, if not, the court might 'tear the corporate veil' and allow you to be sued directly, anyway. I have read about at least one such case). Of course, some work will be more vulnerable to large suits than others (I might just go LLC if I was working in human subject medical research or actuarial forecasting instead of natural resources...).
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Ronald Barry
Professor of Statistics
Univ of Alaska Fairbanks
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Original Message:
Sent: 08-14-2010 10:08
From: Jose Maisog
Subject: New Consultant
Some years ago a friend of mine started up her own statistical consulting business. I asked her what steps she had undertaken to accomplish this, and she said she set it up as a Limited Liability Company, to protect her personal assets in the case of some horrible legal problem. Maybe there were tax advantages, too.
Can anyone offer further thoughts on the mechanics of setting up your own solo practice? Is it better not to go solo and to join some established consulting group instead, where one can leverage off of the group's infrastructure (e.g., handling payroll and insurance)?
Thanks,
Joe
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Jose Maisog
Medical Numerics, Inc. / Georgetown University
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